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.
Craig, You got me, I am really not a gambling man because I gamble with real estate all my life. However, I hope you are right, my associates are from Trumbull and we have land there also, so would not want to bet against myself. Come to Vernon's tomorrow and I will buy you a nice cold frack beer.
Craig, I hope you're right. I get the feeling the companies don't see any reason to lease in trumbull, there have been no proof of any findings. I hope I'm wrong because I have acreage in southern trumbull.
Ryan, These o/g companies have a very good idea of whats down there however there has been no wells drilled.There is a site being prepaired for a utica well in Parkman not far from the Trumbull county line, 5 minute drive from the intersection of 422 and 88. No rig yet but the driveway is in and the landowners name is Mast. Trumbull county should have already been proven but the well that was suppose to be drilled in Kinsman this summer never got drilled. I hear it was due to a law suite.It is to early to tell for trumbull but if companies now are offering 5,000 now what is it going to be this time next year. I would really like to know how much land is ALREADY leased and held by production in our county. I know chesapeake alone has 1600 leases and carrizo has alot to. Good luck
Are they offering 5000 in trumbull county?
CHK and Shell have both drilled wells near Trumbull. Neither turned out, this is why each is not pursuing Trumbull. They do not even like northern Mahoning any longer.
Bill,What utica wells did not turn out good near trumbull, news to me.
I'm glad someone asked him about that. I wasn't sure, but I had not heard anything like that either.
Bill, you need to back up your statement?
All I ever hear about from local media is all about mahoning county, i haven't heard anything about trumbull. I'm really beginning to think there isn't anything here as far as utica and marcellus is concerned
Ryan, Lets wait and see what Bill Anders has to say about his statement ! I believe all Utica wells drilled in Eastern Ohio have been good.