Just was curious to hear of any activity going on in Venango county. Anything from talks of leasing, to actually signing on the line of a lease.
What have the offers been for potential leases? Any good addendums you were able to negotiate?
Has anyone heard how the completion went for the Seneca Resources well?
Hopefully 2012 will hold a lot more activity for this industry founding area.
That's true Brain, but I am cautious that Shell just wants to be able to hold the lease by production by only putting one well on the unit property.
If there are more acres in a unit, would that mean that eventually there would be either longer or more laterals and in the end the same amount of gas (and therefore royalties)? Is this just a matter of getting the money sooner rather than over a longer period of time? I am OK with larger units if this is the case. Also, it seems that a company like Shell would be in this for the long haul, and possibly multiple shale plays. In that case, a stream of income over 30-50 years, which again, would be OK as far as I am concerned.
I feel good about being leased to Shell. When they build their cracker plant somewhere in the tristate area they will likely need alot of gas/ngl's to feed it. Rest assured , there must be a method to the madness. A megahuge corporation like Shell does nothing by accident. May we all prosper!
Shell is supposed to announce location early this year. It converts ethane to ethylene I guess and is to be built in PA , OH , or WVa....Multi-Billion dollar project!
I have a feeling this whole shalegas thing is going to eventually be bigger than any of us realize right now. Keep your fingers crossed!
Wish I had the 250 acres they want! Of course I would retain the mineral rights though....LOL.
I think Shell will build the new plant in the southwestern part of Pa. close to the 8" product line of Snoco that runs to the port of Philly. Anyone hear of Shell increaseing it's offer to $ 3800/ 18% ? Or just rumor?
I spoke to the Shell rep last week and he said it was still $3250/18%.
I am hoping that Pa gets this plant. My opinion is that Butler county would be a logical choice because Shell already has the acerage and pipelines in that area from the purchase of Eastern. They would also want this plant to be reasonably close to a highways leading East and routes 79 and 80 would fit this.
From what we've seen their lips are pretty sealed as to specific sights.....PA could sure use it. I wonder if Horsehead's zinc plant along the Ohio River may be a possible sight. Supposed to be closing and moving down south this year or next. Nova Chemicals is right next door and RT.376 is right there......? Just a wild guess.
Just think how much pipeline infrastructure is going to be required. Lots and lots of ROW will need to be bought. Still many opportunities coming our way. More cash for alot of us! Better get boned up on negotiating these sorts of leases too!