Today Carrizo Oil & Gas announced that it is entering the Utica Shale Play by way of a Joint Venture with Avista Capital Partners. There are 15,000 acres involved and Carrizo is paying $1,500 per acre for ONLY 10% interest. You do the math. What would the value per acre be for 100% interest?
Been pretty quite but found some very interesting transactions in the Licking County Recorders Office see http://www.lcounty.com/recordings/Navigate.asp?SimpleSearch.x=52&am...
type in Knox scroll down to Knox Energy
There has been a million articles regarding Chesapeake's problems lately, and they are indeed in serious trouble with nat gas at $2.50, and now the price of NGLs and oil declining as supplies increase and demand declines due to the Europeon fiasco and China's slowdown. I think this article is fairly informative, and the analyst's comments on what the acreage in the Ohio Utica packages will bring ($500.00 per acre) interesting to say the least. As with most things these days it's a buyers market. See the link...
Questions in my mind:
1. Would the $500.00 per acre figure be based on Utica Gas acreage ?
2. How about Utica Oil acreage + even lower strata like Rose Run / Black River / Beekmantown / Trenton / etc. - would that not affect dollars per acre if present ?
3. Beside 1. and 2. above; I don't think the U.S.A's. Domestic Natural Resources Cartel would let Chesapeake crash and burn as they also would suffer consequences should they want to sell some of their assets. If all of the acreage is of less value the price for resources would have to be adjusted downward. Before they let that happen there would be industry wide too big to fail bailouts occurring. That would be bad for business. Maybe China wouldn't want to pay so much for the natural resources they buy from the U.S. Natural Resources Cartel. What would happen then ? All the big boys would lose too much money. I see 1st bailouts and 2nd inflation.
Time will tell.
Hello Randall ,I have always looked forward to most of the posts you place on here because the majority of them are encouraging or very informative .
This post is probably the most dis- heartening post that has been produced lately for many landowners who have recently signed with DPS Penn or made group deals with Chesapeake and remain unpaid yet ,
The end result with some stock price drops is not always as bad as it sounds .Sometimes the stock prices are allowed to fall and it creates panic selling of shares and when the price is down the corporate people can buy back a lot of stock to enhance their voting control , sadly this one looks worse for Chesapeake and appears to be a desperate situation at this point in time .
Hopefully for those in that position of awaiting their bonus money , Chesapeake will start producing strongly from the various wells they are drilling and turn the entire situation around for the better . Many of the other companies also seem to be on hold awaiting information before moving forward in the Utica play .
with all of the plans for pipelines and processing facilities this really sounds as if the production possibility is underneath us, so it would stand to reason the property leasing value will return to us in the near future and maybe increase substantially if all goes well ,even if you are not leased at the present time .
the sad thing is if Chesapeake is allowed to get destroyed with lowball prices the rest of the companies will be like dominoes with the same asset holdings .
let's keep our fingers crossed and hope the good lord has sent us the blessing Ohio has needed for several years
Keep on keeping us informed Randall and have a great day
Best of luck to all ,Mick
Thank you for all of your news posts both good and bad.
Ditto...Randy is a wealth of valuable information.
hello Phillip , randall has been very helpful and on top of things with the new information and it is good to hear both sides of the coin as this play unfolds ,
I heard between 3-5 years we will see some amazing changes in the places they begin to put units in .
sometimes it is still very hard to believe this has happened in our neighborhoods
It looks like many landowners that had 150-200 acres will be setting pretty for several years to come if this is as god as it is supposed to be
have a great weekend all
Thanks for the kind words. As a landowner, who is leased with CHK, and hopes to see a royalty check someday, and also roots for Aubrey's OKC Thunder, I wish Chesapeake nothing but success. But we all need to know what is really happening, and not reject info that might not agree with our current vision of reality. There is a program on drilling/development of the Utica play at Stark State in Canton on Tue June 19 at 5:30 PM. Bill Williams of KWGD will be one of the speakers. If you are not leased you should attend if you can. The story is the 3rd article down. See the link...
hello randall ,
yes I enjoy the posts and I hope you was able to get a good landowner friendly lease with chesapeake .
Chesapeake has been my only option so far as I am located in a position that chesapeake has leased many properties near me and gulfport has some both east and west of me but the only one that has approached me to lease has been DPS penn that leases strictly for Chesapeake .
I had been in the Smith Goshen Group for a long time in hopes things would go well and I hoped to get a lease at least equal to the alov lease but i knew i could never get many changes unless I stayed with a group for the clout they end up having .
The Dps Penns lease I have offered to me is not too bad except for a few clauses ,they want the top to bottom control, the pad size allows for up to 20 acres and there was no pugh clause unless the landowner had 60 acres or more and they would not make any changes to the lease .
I had heard once that Buckeye Minerals/Alov was going to take add on for the deal they made around December of 2011 from a few of the townships which included Warren,flushing ,part of Union in Belmont County but it turned out that they only wanted certain parts of Belmont county that was close to what they already owned and I was not accepted even though I still had the deep coal rights , and was about 300 yards from a large main natural gas line and 50 acres
it appears that in Belmont County there is not quite enough information to show the true point where the dry gas separates from the wet gas and oil areas yet but it looks as if Gulfport will be doing a unit in Somerset Township and they have a well going in Warren Township and I was recently told they have popped some sort of well with a lateral in the Flushing area so this will give them a triangulated picture of the area so they will be proving up the area soon and this will control the lease value of the remaining un -leased properties in our area for sure .
even if Chesapeake ends up selling off some of the lease sthey control it would probably be to another of the big boys so it would still be good for the landowners
I am hoping I will get leased with a good lease sometime in the near future but it appeaprs they all have stalled out with the main idea of starting to produce whta they have to prove up the limits of the areas they control to develop a feasability study and a good game plan to move ahead in the most profitable manner .
Anyway best wishes and luck to you Randall and keep up the good work with the new information regardless of if it sounds good or bad . No matter how it comes out the ostrich theory does not work for any of us we need the truth and this enables us on how to proceed if we are still not leased .
Have a great weekend ,Mick
Dropping oil and NGL prices present a strong headwind for all companies, but especially Chesapeake. See the link...
Check out the new Reuters - Chesapeake story. Fixing land prices in Mich. See the link....
If that link fails to work, read the article on their home page at...
This link should work ...