While doing research on the utica I have discovered the Trenton limestone that is below the utica. This was the most important oil bearing formation at one time in Ohio and actually started the oil industry in the 1800s. My question is: what is the future potential of the trenton limestone using horizontal drilling? We should be looking into this as a possible new source of income from leasing and royalties.
Makes sense to me. SOme of the permits say "plug back well to drill horizontally". I know the "target" to get to the sweet spot is the Utica - Point Pleasant interval. Makes sense they drill to the next formation to make sure you are where you want to be.
Although Range plans on drilling 2 - 4 wells over the next couple years, Range will take a “watch and see” stance and allow industry to drill Utica since our rights will be HBP by drilling Marcellus wells
My idea is to limit the formation to what they are going to drill in, let them come back at a latter date for more.
I agree completely. I will only lease the utica at this time. Ohio also has coal bed methane that could become very valuable at a later date. Does anyone know if the recent leases in Noble and guernsey involved only the utica or did they give away more in order to get those high bonus prices?
One of the high bonus leases in Guernsey County allowed for the landowner to keep the oil and gas rights from the surface to the top of the Queenston formation. Everything below that was leased;however, there was language in the lease allowing the landowner to regain the oil and gas rights below the utica should , at the end of the primary term, certain things not occur.
That is very interesting. Why do they want the Queenston formation? Are they going to drill for oil or will they inject brine into it?
The Queenston formation is the one just below the Marcellus. They use the name of it in these leases just to signify that the landowner is reserving everything from the surface down to and including the Marcellus. There is nothing of interest in the Queenston itself as far as I know. And as N. Halvor said, the leases he's referring to have a vertical Pugh clause that states that anything below whatever the lowest layer they produce from during the primary term (5 years) reverts back to the landowner. So if they only develop the Utica during the primary term, then the Black River/Trenton and everything below it reverts back to the landowner, and just like the Marcellus, would free to be re-leased.
Where is your area?
Does anyone know if the Queenston formation is an oil bearing formation?
Does anyone have a good readable formation later photo? I know the Clinton here is at about 3,200' but have seen it get lost in formation layer photos
Google " The Marcellus & Utica shale plays in Ohio" By Larry Wickstrom, Chris Perry, Matt Enterpeiss, Ron Riley. Ohio geological survey. Ohio oil and gas association. 3-11-11. This presentation has a chart of all the layers way past the Trenton. Its in color and has a depth measurement alongside it.