It was reported that Hilcorp assigned a significant amount of leases to Shell in PA. Many of us landowners involved in leasing with these companies always speculated that Shell and Hilcorp were "buddies." Shell never seemed to aggressively go head to head with Hilcorp in the obvious wet gas zone. Hilcorp should be flushed with cash again, they are lead in the midstream infrastructure this far up north in the Utica, they have many permits on the northeastern part of the wet gas zone and they move fast. Hilcorp like Gulfport maybe the mobile company that shows all of us what really lies under the northern part of the Utica.
My southern Utica friends, my bet is Hilcorp production up here will show us all that the Utica will give up an equal if not more wet gas as has the Gulfport wells. The only wild card is that Gulfport had to show their cards since the stockholders demanded it, Hilcorp is private and we can only watch them dance.
Has anyone heard any production numbers from any of Hilcorp's wells? The first ones I know of are the wells in the Pulaski area. I assume they are producing. I would not doubt that a land swap could occur between Hilcorp and RDS. I am of the opinion that Hilcorp and Chevron would be able to do a huge land swap as Chevron has a lot of acreage HBP in Mercer Co. Hilcorp and Chevron have done swaps in the past in Alaska and Texas from what I've read.
Should be interesting to see how it all shakes out in the next year or so.
The production numbers for wells in Lawrence County are listed on DEP's Oil & Gas Report website, which can be found here >> https://www.paoilandgasreporting.state.pa.us/publicreports/Modules/...
Production at the Patterson wells is significant.
Are you suggesting collusion between these two company's? Obviously that is a MAJOR accusation - do you have any actual evidence?
No, i have no evidence. Just saying that it is possible. Of course, I guess anything is possible.
Just a thought.
Here is an article I read about a few months ago. Interesting read nonetheless.
Doing swaps of land under leases is not collusion, it is a very necessary part of doing business in the O & G industry. Its the only way to develop fields with multiple players holding hundreds of parcels that are too small to be individual units. Hilcorp, Chevron, Shell and others MUST be able to do so in these areas. The do have the option f doing JVs in these areas also but swaps are a much cleaner way to develop these holdings.
If you can find companies agreeing to offer rates before leasing then you will have something.
Agreed. Collusion requires fraud, deceit or other illegal conduct. Lease swaps are just a normal part of business for these companies.
As Jim L points out , swapping and/or buying & selling leases must happen to fill out areas of interest to either party to establish drilling units. We do want to be produced so we can receive royalties , don't we?
I believe Shell WILL be building their cracker plant and will be more than happy to purchase NGL's from Hilcorp or anyone else that can supply them. Meanwhile , Shell and Hilcorp will barter with each other to strengthen their respective positions in this part of the play. Perhaps Shell will eventually buy Hilcorp out or maybe Hilcorp will wind up being the producer for Shell's Cracker Plant......WHO KNOWS.....? Personally , I do not care who writes me the royalty check. Let's just get this ball rolling!
It is interesting to watch the story unfold.
Jim, I do see an interesting devolopment in the Lawrence County record. On 1/18/13 Co Exprise is shown as the grantee of 5 leases assigned to them from Hilcorp and the respective landowners (grantors). 4 of the 5 are all Pulaski Twp. , the 5th lease is in both Pulaski and Mahoning twps. Just curious as to why this would happen. I don't know if these properties are contiguos or not. There is a consideration listed of one dollar for each document recorded. Is Co exprise getting into the drilling business?
Glenn; have no idea what thats about. A guess could be they are acting as middleman in a transaction that would assign these to Shell but that seems a strange way of doing it. I'm sure that Co-X has plans on drilling, they have expertise at all. Will be interesting to see just what is transpiring there.
Never a dull moment! Alot going on in these parts and alot to look forward too. Just when there appears to be a lull something interesting happens to spark things up again. I just wish we'd see more pipe being laid and bits hitting the ground. Patience is so hard to maintain sometimes! lol. Keeping an eye on the County Recorder's website seems to be insightful.
I was riding around Poland township park area where Hilcorp is punching holes and I couldn't believe tha pipes being placed all over the area. Was noticing the survey markers everywhere, I am beginning to identify the pipeline surveys and one of the workers was explaining how they are even tunneling under woods in order not to hurt the trees, I think this is BS but sounds good to me.
Yesterday, I went to Coitsville to check out some of our land and again I see the same types of survey markers. Poland and Coitsville seem to be what they are working on now. I predict Coitsville will be the site of the next Mahoning county well.