Replies to This Discussion

Permalink Reply by TFP on December 17, 2011 at 12:03am

10K for very large parcels or 10K for any size parcels?  And which areas due you know of this may be true?

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Permalink Reply by Ron Eiselstein on December 17, 2011 at 12:12am

TFP, as we predicted here at Ohio Land Management, the play will morph into grabbing even the 1/3rd acre residential lot.....this is now going on.  In regards to your question, first, we will hear the rumor, then some will say they signed, and as the $5800, some will begin recieving their checks.  I believe we are at the first stage of the offers coming in and they were reported in Belmont.

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Permalink Reply by TFP on December 17, 2011 at 12:20am

In your opinion, this will happen in all areas of Eastern Ohio in the wet gas section?

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Permalink Reply by Ron Eiselstein on December 17, 2011 at 12:30am

When the oil giants horse trade their Utica shares for $4K, $8K and even $15K recently, sure.....$10K to the landowner is still a bargain.  Now remember what we all have learned here, many factors must allign themselves on our local ground level before they make the bid.

 

Now, ....... we can play the landgroup game and wish and pray for the price we want.  I always seem to get better results by studying the market and not letting lawyers and preachers lead me to the promise land.

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Permalink Reply by Mickgyver on December 17, 2011 at 4:40am

hello Ron hope alls well , Have you heard any recent well production reports . I am in Belmont county and I have not heard many of the rumors lately .

The last price I heard a couple days ago was an $8000 plus deal ,in West Virginia but not proved up yet .

The $10,000 sounds even better ,and it should be rising since Chesapeake made their big sale for $15,000 per .

As Usual on here there are still those that have no acres in the till and they try to make things sound bad again ,it would be nice if more people could just try to be helpful and encouraging instead of all gloom and doom with a side order of jealously .

I enjoy passing on helpful info so we can keep the landmen honest as possible .

It sounds like there are a lot of pipelines planned for Eastern Ohio so far, so this should silence any rumors that the wells are not doing very well . This must be looking better all the time .

The last report from Enervest ,Chesapeakes partner said the water line was at $15,000 but he did not think it would be ther long with more and more reports becoming available . But I have not seen the latest reports .

I know they are sort of circling the wagons to have a strong feel for the entire area but it seems the info is not getting out as good . Probably to keep the cost down for their benefit .

Keep up the interesting posts and Information .  Mick.

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Permalink Reply by Dan on December 17, 2011 at 11:01am

It would seem production #'s must be pretty good.  Below is an investment solicitation email for a midstream company spending a few billion to get in the play and add pipeline...."Let it Flow, Let it Flow, Let it Flow!

 

Posted by Brittany Stepniak - Wednesday, December 14th, 2011

The Utica Shale formation in Ohio is opening up “enormous opportunities” with developmental plans underway said Frank Semple, CEO of MarkWest Energy Partners L.P.

MarkWest is a limited partnership that specializes in “midstream assets” in the Northeast, Southwest, and the Gulf Coast.

Partners within the company have recently confirmed that they will disclose full details of their new plans for the Utica shale at some point next month. This confirmation occurred shortly after the firm released news of a” $2 billion acquisition in the Marcellus shale with the private-equity firm Energy & Minerals Group.”

This past Monday, MarkWest publicized an aggrement to pay $1 billion in cash and another billion dollars in stock for Energy & Minerals Group's 49% stake in MarkWest Liberty Midstream & Resources LLC – “the largest processor of natural gas in the Marcellus shale of Pennsylvania and West Virginia.”

*Image courtesy of ShaleBlog.com.

“We view [the Utica and Marcellus deal announcements] favorably for credit because they will increase MarkWest’s scale and diversity,” analysts at Standard & Poor’s said in a note to clients on Tuesday.

Semple said the partnership with Energy & Minerals Group in the Utica will build on the two firms’ success in the Marcellus.

‘We anticipate significant additional growth in our producers’ volumes and our midstream assets [in the Marcellus] for years to come,” Semple said.

Energy & Minerals Group, which specializes in natural resources and with more than $3.8 billion under management, is led by CEO John Raymond, who has also worked as CEO of Plains Resources Inc. and Chief Operating Officer of Plains Exploration & Production Co. PXP -7.64% .

In the first nine months of this year, the Utica landmass raked in 42 drilling permit approvals – back in 2010 it had only acquired a total of two permits.

According to the Ohio Department of Natural Resources, there's probably 1.3 billion to 5.5 billion barrels of oil in the Utica shale region. The area potentially holds another 15.7 trillion cubic feet of natural gas.

Hearing how much oil and gas could be extracted from this region, several energy companies have taken action to get in on the profits that await. Hess Corp. (HES), Consol Energy (CNX), and Chesapeake Energy (CHK) are among the biggest investors.

The Utica shale has piqued investor interest from all over the nation; both from corporations and from individuals interested in those companies' stocks. What are you waiting for?

*Quotations and indented excerpts from MarketWatch.  

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Permalink Reply by 2s72s0k9mm8gd on December 17, 2011 at 9:21am

Ron , Thought the wet gas region was , for the most part , leased up?

What are the offers Chesapeke is making in Poland?

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Permalink Reply by Ron Eiselstein on December 17, 2011 at 9:26am

Glenn, indeed most of the larger tracts.  As far as the suburban, urban lands, the play is on...........many are receiving 5800 checks already and talk is $6-$8.

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Permalink Reply by 2s72s0k9mm8gd on December 17, 2011 at 12:54pm

Awesome!

Am fast coming to believe there is vastly more under our feet than we realize!

Just hope the O&G's are more honest with us when Royalty Time arrives.

Royalty Monitoring and Auditing  may be a potential business opportunity for some savvy accounting firms out there.....? May be a worthwhile service to offer don't you think. IMO it would be a wise investment for landowners with a few acres & up. Could be worth it's weight in gold if dealing with a less than sterling O&G!

Make the fee a percentage of royalty. The more you make , the more they make. Now that's an incentive to ensure proper payment!

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Permalink Reply by Ron Eiselstein on December 18, 2011 at 9:11am

Glen, Ohio Land Management, recognized this awhile back and have retained an oil engineer with Exxon  in well logging experience for consultation.  Yes, this will be required and is now a part of our management abilities.

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Permalink Reply by Bruce Behner on December 23, 2011 at 10:59pm

Glenn,

That is an awesome idea!  Very ingenious, a real power play for landowners and any firm willing to step outside normalities and make a buck.  Nice.

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Permalink Reply by William K Watkins Jr on December 17, 2011 at 2:44pm

Drill was pulled from vertical Utica well  across from Carnes Center this week in Belmont co.. Already 3 large tanks placed on pad.

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