Hilcorp updates??

Ok I did the HUGE leasing event in Lawrence Co. back in September with Hilcorp.  We actually got a letter in the mail from Co-Exprise stating that once our bank info was faxed our lease check would be wired.  Now what??  Yah, we have a nice sum in the bank now, but do we get notified somehow if Hilcorp is going to drill on our land? How do we know what's going on?  I google "News updates on Hilcorp" and get nothing recent.   View points please!

 

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Permalink Reply by Tom L A. on November 9, 2011 at 8:47am

Didn't Hilcorp get bought out?

Permalink Reply by Jim Litwinowicz on November 9, 2011 at 10:14am

Hilcorp wasn't bought out.  They sold their holdings in the Eagle Ford Shale in Texas to Marathon for $3.5 billion.  They have holdings in Alaska, Louisiana, and more.

Permalink Reply by Nelson Roe on November 9, 2011 at 9:38am

JRA,

I do not know much history on Hilcorp (However I think I have still heard of people receiving lease offers from them in the past couple of weeks, so I don't think they have got bought out) but some of the companies (like the one I signed with) are basically just planning on pursuing lease opportunities this year & maybe even early next year so they don't even have plans to start drilling operations until sometime in 2012.  Most of the companies have an initial term of 5 years, so they do not have to start immediately.  But yes, I believe that they have to notify you if/when your land is included in a proposed drilling unit & I also believe that they are to proved you with a plat showing all of the acreage that will be included in the initial drilling unit.

Permalink Reply by Jim Litwinowicz on November 9, 2011 at 10:21am

I talked to the Hilcorp execs at the Cathedral event.  They plan on drilling several wells next year.

Here's my best guess of how they will proceed but predicting when and where is difficult.  They are still acquiring leases.  This winter, they will asses all of their holdings and consult with their geologists and development team. They will look at seismic reports, infrastructure, land holdings, and more to decide where to drill first. 

It would be great if Hilcorp would have a landowner's meeting this winter to go over what they are doing but the history of all of these companies is to keep their cards very close to the vest.  They never want their competition to know what they are doing. 

At this time we just have to patient.

Permalink Reply by KML on November 21, 2011 at 11:05am

I recently heard rumors that Hilcorp is only going to drill for crude oil in our area.....supposedly only need 140 acres for this type of rig.  Can you confirm any truth to this?

Permalink Reply by JoKlause on November 21, 2011 at 12:28pm

Not sure if that's good or bad KML...would also like to hear the aswer to that question

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on November 21, 2011 at 1:29pm

Unless they know something we don't know I can't imagine this being true. Unless they divest (flip) here and buy into the oil counties of Ohio......? Didn't know we were in an oil region if it is true. Likely just rumors but they sometimes have a grain of truth to them somewhere.

If I was a billionaire looking to become a trillionaire it would make sense to position myself so as to be a thorn to a huge corporation with lots and lots of bucks and sincere plans to produce an area..........? Buy all you can all around them to impede there progress and then sell to them for 5x (or more) what you have invested and BAM 60 million becomes 300 million and I am on down the road to the next shale play AGAIN. Fortunes are being made this way all the time.

Look at the Ohio threads and you will see they are getting 5000+/acre and 20% royalties in the Oil Plays. I doubt we are an oil play but we are ripe for profiteering by lease flippers.

2012 will be an interesting year in our area to be sure. It will be most interesting to see how this all plays out. In the end we will be O.K. but it may be a shame that games played by the greedy and rich only postpone progress and prosperity for all of us common folks. I know I'm not getting any younger so let's get this show on the road ASAP! LOL

Permalink Reply by Jim Litwinowicz on November 23, 2011 at 9:13am

Hilcorp is interested in both oil and wet gas. They are after both. I don't think you can drill for just oil in our area anyway as the Utica Shale contains oil, wet gas, and dry gas to varying degrees depending on location. Even where the oil concentrations are highest, one also gets various gases.

While 140 acres can be a unit for a single well I would think they would want larger units for the many reasons that have been discussed at length on other threads.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on November 23, 2011 at 12:14pm

Jim: What do you think our prospects in Lawrence County are , regarding oil & wet gas?

I know there has been no seismic testing in my immediate area. Shell is supposed to be excited with Patterson Well results but tight lipped about them.

Just wondering if you may have some light to shed on our prospects.

Permalink Reply by Jim Litwinowicz on November 23, 2011 at 1:57pm

Lawrence Co is on the dividing line. The further east you go from the Ohio border, the dryer it gets. The question is where is the transition line?  And the "line" will not be finite, the gas will gradually get dryer and not a finite line from wet to dry gas. There will be several wells drilled next year in Lawrence Co which should clarify things quite a bit.

From what I hear, there is no oil at the Patterson well. Don't know about the wet/dry equation there. The Cheeseman well is a high producer (9.5 MCF/day) but all dry gas so far as I know.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on November 23, 2011 at 2:19pm

Thanks Jim. Production reports for Butler County show some liquids and minor oil so maybe we are O.K. here. Wait and see I guess.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on November 23, 2011 at 12:25am

According to Ron Eiselstein Hilcorp is interested in Trumbull County now. There may be hope for some of the disenchanted ALOV members after all. Good luck to all concerned.

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