Tomorrow is the biggest day of the year for Trumbull's ALOV, the faithful have been summons to the historic Packard Hall to hear the value of their 80,000 acreage. Long Live Free Enterprise!
I am not an authority on what geology lies underneath Trumbull, neither do I break bread with Bob Rea. I am however a long time real estate investor and have been recieving phone calls and e-mails asking for my take on this big event tomorrow. As with my associates, I will address this assessment again from a landowners perspective.
Who is the oil company ready to write checks for many in Trumbull?, you hear Chesapeake, you hear it is not Chesapeake. If Chesapeake is tasked to continue to gobble up as much acreage as they can in Ohio's Utica, then it is Chesapeake. If it is true what Wall Street says today about its rating of the company, then I do not believe they can handle a big play like Trumbull. If Trumbull is to big right now for Chesapeake, it will be a "big boy" in the oil industry.
Now for the amount.... as I studied and posted previously; I believe in production and facts and less speculation. All the disclosed production of wells in the Utica have been in the southern counties. So far no production reports exist for any wells up here in the northern counties, simply because they started down south. However, the second Utica well in the play was punched here in Lake Milton by Chesapeake a year ago and they have kept this well, very secret. But...out of nowhere as I reported weeks ago, comes the new disposal wells by Rex that drill deeper than the Utica AND have been "well Logging." Surprising to say, after the first few disposal wells punched in NORTHERN MAHONING, the price per acre shoots up to $5800 in the recent ALOV signing. Shortly, we now hear after slow offers in the Trumbull ALOV, that they now have an offer. With the logging of the disposal wells up here, they now have a pretty good idea what is under Trumbull. If they continue to play the game, they probably will offer $3K to $4K an acre since no wells exist up in Trumbull and the locals know this, most will sign.
Someone on here said they drilled in Fowler and declared it a "sweet spot". Then another claim was that someone on Ridge Road was offered $5,000/acre from Chesapeake. Just heresay at this point on here, but worth looking into anyway.
Amanda, There has been No drilling in Trumbull county yet.
Maybe it was a testing spot? Not sure how all of it works to be honest with you. Like I mentioned, it was a statement on one of these discussion boards....could just be heresay. Thank you for the correction. I do not mean to misinform in any way.
Sorry, I was trying to state no offers that were acceptable to your group. Please understand that I as you am a landowner and I am not a member of your ALOV, but I do have very good friends in Trumbull and manage land as well.
Ron, No problem. As you were saying." It is all about the geology here in Trumbull". I believe in time it will be proven and I have total confidence in the ALOV leadership.
Indeed it is, geology and patience. I do have my reservations about your ALOV though, one day I will expound.
keep drinking the kool aid.
News today is that Chesapeake completely pulled out of Trumbull, this we knew months ago.
What is perplexing is that the ALOV is not signing and yet Hilcorp is leasing in some parts of Trumbull anywhere from $3000 to $5000/ 20% , Several large landowners called me today and I forwarded them to Hilcorp. If any landowner needs help, I will be happy to direct them to Hilcorp to see what offer they have and if the acreage is in their buy window. Full disclosure, I am in no way affiliated with Hillcorp, our land management company is now beginning to lease several Mahoning acreage to them. They seem to be very sharp land agents and the manager we met with today is very educated in real estate and is not one of those landman flippers.
Ron, please send me info on hilcorp.thank you
Ron, Are you a recruiter for Hilcorp now ? (L.O.L.)
No, I wish they would hire me so I wouldn't be so land poor all the time. Hey, they are beginning to get serious here in Mahoning county, they are not playing the BIG oil company game with us anymore, this company so far is very straightforward we will see..........
Ron, I bet Chesapeake will be back to purchase the ALOV ACRES in Trumbull. I am willing to put a little wager on this,say a case of your favorite beverage versus mine. And I also believe this deal will be done by new years.