Couldn't make it to the S-G meeting tonight. Anything noteworthy that can be shared here?
Same question here. I had a sports awards banquet to attend for my sons and couldn't travel south.
Here was my take on the meeting. Group is solid with a large number of contiguous acres in their position. The group continues to have dialog with several large key players in the area, along with a few companies looking to get a piece of the Utica/Marcellus duel shale play available to Belmont county drillers. The Smith Goshen group acreage is located in the center or on the edge of the Utica wet gas zone depending on who interprets the data used for mapping. The specific content of discussions/negotiations with players was not disclosed, only generalized. The group cautioned members to be cautious of landmen attempting to lease land well below market, or pushing a lease that you may regret signing down the road. Each member should do what they feel is right for their family, but make sure you have legal representation and understand every bit of any lease that you sign.
Lease values continue to hold steady, however there is limited leasing activity right now, driven by uncertainty in the current economy and low natural gas prices. Drilling companies are being conservative with new investments at this point in time, with the financing scandal at Chesapeake, and limited drilling data in the county. Since many of these companies are drilling around the groups acerage, one or two additional data points is all these companies will need to justify the capital and lease up one of the last available large parcels in the play. It is not a matter of if the group will bring an offer to the group, but when.
Thanks for your take on the meeting. Any mention of the mining issue as it relates to any of the organizations presenting an offer/lease?? Also, any new word from the ODNR/State as it relates to the mining issue ?
No new updates, only that ODNR State is committed to find a resolution. They still believe that a workable solution will be found, both sides working together on a plan is believed to be the best and fastest solution. No specific information regarding interested companies position on the matter. I get the impression that when the oil and gas companies are confident of what lies beneath, they will not let coal get in their way. With the length they are able to push laterals today, most if not all of the area should be accessible one way or another.
I believe Hess has been drilling Marcellus and Utica wells in that area.