"Now let's get on with it!" The regions business journal has published today another whopping investment of $300 Million in NE Ohio and WPA, site not disclosed yet. Landowners, published.... is that this investment is 50 miles of gathering pipelines, a chryogenic plant to handle, check this out WET GAS. What can we deduce from this solid investment... rigs and royalties from Hilcorp's footprint in NEO and WPA. I'll deduce this, Hilcorp has majority of their leases in Mahoning county and several WPA counties near the Ohio line (wet gas), they have staked their claim to a specific area in the wet gas zone.
I'm glad I recommended Hilcorp as the oil company of choice for Ohio Land Management's landowners. What this all means to us is that we have an oil company that is private, solid and has not overfilled their plate. IMO, Hilcorp will begin to move rapidly into production mode and this means royalties to our landowners in Hilcorp's footprint. What excites me the most is production and midstream is around the corner and the little giant Hilcorp will bring our minerals to market, bringing royalties to those landowners that signed with them in the wet gas zone, shortly.
"But there are many borkers who have no client and they take your lease only to shop it to the highest bidder. This ties your land up for months on end which may never result in your land being leased."
I believe you mean 'Wishgard'.
ILG tied up my land for 9mo.
That's reasonable. However, Wishgard seems to be the most notorious of them.
I guess we have developed a good relationship here on this landowner site and speak the same language that we now are finishing each other's sentences. Yes, as I have written many times here, I can only use my little expertise in real estate investments to try to understand the strategy of a play. When Hilcorp came to town, I was impressed with them as being a smaller company but with production behind their belt. After all, it has been pounded into us that royalties is the big enchilada here and not the bonuses. Not to mention that CHK has the history of a lease player and a mission to amass acreage beyond their production capabilities. Hilcorp IMO will show us very soon that they assemble acreage in a certain quadrant and will develop the minerals thus the midstream JV with InSource. Now we can see a clearer picture of what is now and what is to come, this development will set a precedent for us in the Utica how others will perform, Leasing, infrastructure, facilities and production. Remember, after all, billions are invested to get a return and a return as soon as possible, this is not a flipping game. Of course flipping or trading will be invoked when units require it. Also, notice how the CEO of InSource mentioned "timing;" by the time they complete the infrastructure to handle the product, the wells will be ready to come online.
I here there is talk of Bessemer Pa. the old cement plant but its speculation at this time.
The article says the plant will be in NE Ohio but does not say where.
Poland , Ohio's 4,000 acre landfill was just leased by Hilcorp and is on the PA line. My bet is that the NiSource plant is to be built there.
Here's a link to the story;
They stated they will start construction this fall and the plant will be operational in the 3rd quarter of next year. And that is 50 miles of 20" line. A lot more smaller lines will be laid to supply those mains. This oughtta keep the tube mills working overtime.
Great news. Included in the story is that Hilcorp has been granted 11 drilling permits for Lawrence Co Pa. They are an aggressive company that will be impress people.
John O; you are very near the Pulaski drilling site if I remember correctly. Any updates? How is it going?
Seems to be going good. Hilcorp put in a nice new blacktop road and they have put in an access road to the proposed well. One of the road engineers said it would be around 100 days before a rig was moved into the area, that was about 25 days ago. Its seems that some of the work is around the clock now and the amount of gravel they have trucked in has been impressive.
Speaking of trucks if anyone out there with a CDL is looking for work there is a banner up by the Pulaski flea market of a company seeking drivers. Its on 551 by the RG steel company just outside downtown Pulaski.