Chesapeake Declares Eastern Ohio RICH IN OIL!

Matthew Steffy of the Tribune Chronicle (July 29, 2011) reported an announcement made by Chesapeake:  "Utica Shale in eastern Ohio is liquid rich."  These results follow two years of "proprietary geoscientific, petrophysical and engineering research performed by Chesapeake. Eastern Ohio Utica Shale is said to be "characterized by a western oil phase, a central wet gas phase, and an eastern dry gas phase."   Chesapeake who currently holds 18 of the 24 drilling permits in Ohio plans to drill 20 wells by 2012 and 40 wells by 2014.  The discovery is said to increase the value of Chesapeake by $15 to $20 billion.

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Permalink Reply by Jim Litwinowicz on July 29, 2011 at 9:13am
Did they release any mapping showing the different areas of the different phases
Permalink Reply by Sylvester Deal on July 29, 2011 at 11:43am

Jim,

 

See CHK press release.  No maps, just promote.

http://www.chk.com/News/Articles/Pages/1590490.aspx

 

SD

Permalink Reply by scott jackovitch on July 29, 2011 at 1:39pm
Great stuff ,   Better production rates than the Eafle ford shale in Texas.  Some of those wells in the Eagle ford are producing well over 1000 barrels of oil per day. Sounds like we have BIG OIL here . The three producing wells referenced in the utica would have to be from Harrison and Carrol counties I believe.
Permalink Reply by Jim Litwinowicz on July 29, 2011 at 2:35pm
Look at this;

Drilling and Completion Cost of $1.29 per Mcfe

 

That is huge.  What an amazingly low break-even point.

Permalink Reply by Josh on July 29, 2011 at 3:24pm
It sounds like the entire Utica area is saturated with liquid Gold!!!  All three of those wells are producing awesome numbers from what I heard.
Permalink Reply by scott jackovitch on July 29, 2011 at 3:32pm
I have heard the same thing Josh. The Buell well in Harrison county has been rumored to be producing 2500 barrels of oil per day. I have heard that Carroll county is looking great also.
Permalink Reply by Tanya Gabriele on July 30, 2011 at 12:19am
I know a man in Vienna whose well is putting out oil and the company that maintains it (BOCOR) is letting the oil set.  What good is a high level of productivity when these companies can't even ship to the refinery?
Permalink Reply by Paul Martinelli on July 29, 2011 at 5:46pm
Sarah was right......Drill Baby Drill......
Permalink Reply by Brent Laner on August 1, 2011 at 6:07pm
Don't think there's a Tioga in Ohio
Permalink Reply by Missy Boardman on July 29, 2011 at 2:17pm
Based on Chesapeakes annoucement, If someone owned property in the vicinity of one of those wells and were to offer to sell their mineral rights, what do you think the value of an acre of land near one of those wells would be?  Not a surface lease value a mineral right $/acre value. 
Permalink Reply by Jim Litwinowicz on July 29, 2011 at 9:48pm

First are you asking about selling your rights or leasing them? Big difference.

 

What where people getting in your area prior to this announcement?

 

I don't have a clue but what I would do is start talking to as many people as possible. Find out what was offered in the past.  And then I'd wait six months and see what develops. Keep in touch with as many people as you can.  Have monthly meetings to exchange info. Study the issues.  And try to get a landowner group together.   It will take time for offers to peak.  Be patient.

Permalink Reply by Farmhouse on July 29, 2011 at 10:29pm

Missy- Don't worry. If you own land there, you are about to find out real soon what those minerals are worth. Better charge your phone cause it's going to Blow Up. Tread carefully and Lawyer up.

I think Chesapeake just shocked the world. Biggest announcement since Range started reporting their early Marcellus production.

Good luck. If those minerals are yours, their value hasn't taken off yet, with this announcement you only just left the gate.

 

 

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