Ashtabula County, OH

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Ashtabula County, OH

This group is for all things related to oil and gas development and leasing in Ashtabula County.

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Members: 315
Latest Activity: Jul 11

Discussion Forum

Tight Oil In Ashtabula County 2 Replies

Started by Joseph-Ohio. Last reply by Joseph-Ohio Jul 11.

UN Agenda 21 - Is It Inhibiting / Stalling Development In Ashtabula County ? 5 Replies

Started by Joseph-Ohio. Last reply by Joseph-Ohio Jun 16.

Buckeye mineral 18 Replies

Started by don. Last reply by don Jun 2.

Horizontals - Morrison - Jewett - Magyar 3 Replies

Started by Joseph-Ohio. Last reply by Joseph-Ohio Feb 13.

Feeling Un-Represented 2 Replies

Started by Joseph-Ohio. Last reply by Joseph-Ohio Jan 16.

A Post On The United Shaleowners of America Pages

Started by Joseph-Ohio Jan 12.

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Comment by Joseph-Ohio on May 25, 2014 at 7:23am

http://gomarcellusshale.com/forum/topics/the-secret-of-old-hbp-leases

I think this important to read for those of us in Ashtabula County.

Pertains to HBP and older small unit size leases.

Comment by Joseph-Ohio on April 30, 2014 at 5:03pm

Forced Pooling / Forced Unitization is a true concern.

Especially considering CHK and EV leaseholds which are probably  pre-Utica PP Tailgate Class and also lands HBP.

Good luck to all Ashtabula County landowners.

Comment by Ronaround on April 30, 2014 at 3:32pm

Agreed..We cleaned our old  leases and now were back to 10-100 dollar lease. Better yet.How about forced pooling from our state and representives...

Comment by Joseph-Ohio on April 30, 2014 at 12:11pm

No.

Not our lands.

Comment by frank smith on April 30, 2014 at 12:07pm

Well I guess leases  are  now back to $10 per/ac.

Comment by Adal on April 30, 2014 at 5:24am

Part 2.

Alan Wenger, a principal at the Harrington, Hoppe & Mitchell, who coordinates the law firm's oil and gas program, helped negotiate the BP deal and it's possible those leases could be reassigned, he says.

"There still could be development from other companies," Wenger tells The Business Journal. "I think they'll market the land and assign the leases."

For example, an energy company might find a way to develop the acreage with less expense and investment, and thus realize more profits in the northern tier of the Utica.

"It's a matter of economic viability," Wenger says. "Companies might be able to develop these more cheaply."

Plus, as technology and drilling techniques improve, this section of the Utica shale can become more viable. "As this comes along, there might be other opportunities," Wenger says.

Most of the lease bonuses have been paid out, but there might be a handful that encountered title issues, which remain unresolved, Wenger says.

The leases include a five-year term with an option to renew and were signed in 2012, Wenger notes. "Those parcels are still under lease and could be developed per the terms of the leases."

Clearly, most of the interest in the Utica shale has shifted from the northern section to counties in the south, where oil and gas production is robust.

Comment by Adal on April 30, 2014 at 5:22am
YOUNGSTOWN, Ohio -- BP America is planning to sell off 105,000 leasehold acres it owns in the Mahoning Valley as part of its exit strategy in the Utica shale, a company spokesman says.

"Just because this play doesn't fit in our BP portfolio doesn't mean it's a busted play," said Curtis Thomas, BP Ohio's director of government and public affairs. "It doesn't mean that it's not a perfect play for another oil and gas operator."

BP announced this morning that poor returns from its appraisal well program has caused it to discontinue investment in the northern tier of the Utica shale, especially in Trumbull County, where the company has drilled eight wells.

The corporation issued a $520 million write-down related to its Utica investment as part of BP's first quarter earnings report released today.

Thomas says that at present, the Utica does not meet the corporation's investment criteria and plans to market its Utica assets for sale. The company holds 84,000 acres in Trumbull County and another 11,000 or so acres in neighboring counties in northeastern Ohio.

"Different companies have different criteria," Thomas said. "So, we hope there will be another company that will come in and they'll look at the property, look at the assets and they'll say that this fits their portfolio."

Thomas emphasizes that BP is proud of the investments it's made in the community, including donations to the region's educational programs. "We've tried to be a good neighbor while we were here," Thomas said. "We're proud of the investments that we made."

BP entered the Utica market two years ago when it signed about 1,900 landowners to oil and gas leases encompassing 84,000 acres in Trumbull County. These leases included bonuses of $3,600 per acre to landowners and 17.5% royalties on production.

But production at five test wells coordinated by BP in the county have, at best, proved anemic.

According to fourth-quarter production reports issued Friday by the Ohio Department of Natural Resources, BP drilled four wells in Trumbull County, and its appraisal partner, Brammer Engineering, drilled one well.

The most productive of these wells is the Lennington well in Johnston Township, ODNR reports. That well produced 1,889 barrels of oil and 20,316 per thousand cubic feet of natural gas, or Mcf over a 92-day period. BP's Buckeye well in Hartford Township produced 378 barrels of oil and 20,322 Mcf of gas during a 75-day period; BP's Zerovich well in Mecca Township produced 746 barrels of oil and just 2,884 Mcf of natural gas over 30 days; and its Jewett well in Johnston Township reported no production results.

A fifth well drilled by Brammer Engineering -- the Morrison well in Mecca Township – produced 1,078 barrels of oil 9,487 Mcf of natural gas.

The average oil production per well across the Utica stood at 4,089 barrels of oil over a 65-day period. Average gas production stood at 122,514 Mcf, ODNR reported.

Comment by Werner Kostendt on April 30, 2014 at 12:57am

Will BP be able to sell or will their leases just run out?

Comment by Bryan on April 29, 2014 at 9:34pm

Looks like a bust here in south county as well since there are no plans of drilling anytime soon...

Comment by Dan on April 29, 2014 at 5:23pm

Looks like the winners are the ones that took the BP money and ignored the others that cried wait , wait for a better offer. I don't expect anything big in my life time.

 

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