UPDATE ADAMECK#1 GREENFIELD TWNSHIP TEST WELL AND POTENTIAL FOR ERIE COUNTY ACTIVITY
The holdup in flow testing that well is a dispute between the driller of the well, Utica Resources and the owner of the well Indepth Exploration. They were exploring bringing a gas line to their site with National Fuel Gas a public utility company and EmKeyEnergy,LLC an Erie based company anErie,Pa. based company that acquired $37million dollars in assets from Norse Company including gas pipeline distribution lines.
EmKeyEnergy,LLC. has recently acquired over 20+ gas leases on over 1,300 acres in the Wattsburg area
where over the last many decades over 500 Medina wells were drilled. We are all awaiting the test results
of the Adameck#1 well but until the internal dispute is resolved those tests are put on hold. Weatherford tested the well and the information that was made available was that it tested well for gas (900+hit) in two
areas and the depth of the Utica around 179'. Keep in mind that was oral information not confirmed.
Conversations with others in the gas industry seem to have interest in the Upper Devonian as well as the Utica. The Upper Devonian is above the Marcellus a more permeable strata that in some cases can be
naturally fracked and obviously less expensive to capture and in some areas a history of good production.
Obviously the price of gas below $4 is an issue and there are forecasts of increased gas prices.
There have been discussions with the Erie County Economic Development Company, the company that is pushing the Erie Port project to help with pipeline distribution in Erie County and but he Erie Port project will allow participants of the gas industry to use shipping over water to lessen the impact of heavy equipment over our roads as well as it being less expensive to use the Lakes. Also opens up major eastern U.S markets and export to Europe etc.,
Currently, other areas in Pa. where extensive Marcellus is being developed and infrastructure is in place
has attracted more activity than Erie County as newer technology is being developed and more experience in horizontal drilling is allowing the industry to improve efficiency, Erie County will eventually
be targeted. The question remains whether Erie County will ready and able to encourage this activity sooner rather than later. The economic benefits are important and the time differential will benefit the
environment in Erie County as safer and more efficient methods of drilling are discovered.
Views: 2734
Replies to This Discussion
-
Permalink Reply by pg guy on
-
Any further update on this well?
Do you believe the Adameck #1 will ever get a pipeline connection and sell gas?
How about Utica Resources or InDepth Energy - do they hold other acreage in the area that they could drill to increase production capacity and thereby make pipeline construction more economically feasible?
Is there any activty at all at the well site, or other nearby well pad construction? (I think the well legally must be plugged after a year if there is no production or permitted plans to alter the well.)
Sorry for all the questions, just interested to see activity that possibly expands the prospective producing Utica footprint - fills in the gaps, so to speak.
-
-
Permalink Reply by george m vietze on
-
The owner of the well Indepth Exploration is in a dispute with the drilling company, Utica Resources. I cannot speak for them and I have the same concerns you have. My opinion is
that nothing at Adameck#1 will happen prior to the dispute being resolved and I do not have a guess when that will happen and my guess is that it will take some time. EmKey Energy also
has distribution lines in the area and competes with National Fuel Gas and EmKey Energy is the
lease holder on our land, if Adameck#1 is flow tested or the owner makes accomodations to
tap the distribution line we may know more.
I have heard that there are plans underway to drill more wells in that same area in the spring.
Utica Resources are located in Oil City and anyone is free to call them direct.
We have the same interest as you and want to see further exploration of gas and oil in this
area. The fact that plans are underway to develop more well is an indication that the test results
must be encouraging further exploration. We will follow this activity because we would like to
see our property properly set up for exploration.
-
-
Permalink Reply by george m vietze on
-
Update on EmKey Energy:
Taken from another source: "EmKay Gas Processing,LLC. operates 325 miles of natural gas
pipelines located in Pennsylvania and New York, processing natural gas removing propane,
butane, and natural gasoline from the wet gas during the conversion to dry gas. The company
received an $889,686, 15 year loan at 2.25 percent, to construct a 5,200 square-foot facility
in Union Township. The $1.78 million project will allow the company to construct a gas processing plant, retaining 17 existing employees and creating nine more positions. The project is being sponsored by the Greater Erie Industrial Development Corporation."
-
-
Permalink Reply by george m vietze on
-
The Greater Erie Industrial Corporation is spearheading the Erie Port Project to make Erie a major shipping center on Lake Erie. This will allow the gas industry and other industries to ship large equipment and vehicles over the water and it will have less impact on our road systems. This also will allow these industries to serve the large highly populated eastern U.S.markets as well as serving overseas markets. The natural gas industry wants to serve the Eurorpean market where gas sells in the $16 range vs
$4.00 + range in the U.S, this will drive new drilling and further gas exploration in this area. The new Bayfront Project, GAF site, Port Authority Bayfront Land, Scott Enterprise new proposed development and the Port of Erie project together with the Convention Center will create the synergy to spread to downtown Erie and the
surrounding neighborhoods creating higher property values and raise the low rents that allow the criminal elements an environment to thrive, the higher value and rents will help lessen that impact and the downtown area and neighbors will be safer for visitors and tourists. This will take time but the foundation is being laid for future growth and economic vitality in Erie County.
-
-
Permalink Reply by george m vietze on
-
If plans to drill a number of wells in the spring are real is there a way to determine if permits are being applied for or it that information proprietory and not available?
Does anyone know how to verify plans for drilling?
-
-
Permalink Reply by Oliver Perry on
-
George,
There haven't been any new drilling permits applied for in Erie County. You can stay on top of this type of information by subscribing to e-Notice in the following link. The DEP will send you an email whenever any new permits are applied for in the county or township you specify when signing up. The service is free and has accurate info.
http://www.ahs.dep.pa.gov/eNOTICEWeb/
I just today got notice from e-Notice that Utica Resources has applied for inactive status for the Adameck #1 well. Here is the link for that permit application:
http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?A...
-
-
Permalink Reply by george m vietze on
-
Thank you. I signed up for the information and I appreciate your help.
-
-
Permalink Reply by george m vietze on
-
This recent article by Scott P. Borsack on the effect of new technology of drilling techniques have had on potential Royalty payments to landowners. Are these numbers real and do they represent the value of Royalties in todays climate?
Are You Ready For The Explosion In Royalty Values?
By Scott P. BorsackIT has begun. You probably missed IT and who could blame you. IT was subtle but inevitable. If you recall from the seminars that we have done over the past two years, I have been saying that royalty values were going to increase, and once they started, the pace would quicken each year. These changes would not depend upon whether there was exploration activity on your property. Rather, they were inevitable with the improvements in technology, changes in methodology and the realization that yields per well were greater than estimated. Right under our very noses, the exploration companies have quietly changed their drilling patterns. This has caused estimated royalty values to increase significantly. This is not a legal theory. The geologists and appraisers have changed their approach to valuation as they have learned of the changes in the field. When you factor into this new equation the increased yields per well that are disclosed every six months, values are going to continue to move in one direction – UP. Do you have a plan to deal with this? Do you have a plan at all? Have you done any planning? When exploration companies first started to explore for natural gas in the Marcellus Shale region, they drilled one well to each 140 acres or so in a drilling unit. Last year exploration companies drilled one well to every 80 acres and we had begun to hear rumblings of theories that increasing the density – more wells for every drilling unit – would increase the yield. This year, in July to be exact, geologists and appraisers learned that exploration companies had begun to drill one well to every 50 acres of land. Is this significant? You betcha. Under the old methodology, a landowner with 160 acres might expect two wells to be drilled on their property. Another way to think of it was that in a drilling unit of 640 acres, 8 wells could be drilled and our landowner with 160 acres would account for 25% of all royalties from activities in the production unit. Under the new methodology, 160 acres could support 3 wells. From the production unit point of view, almost 13 wells could be drilled on the property. This represents an increase in the number of wells in a production unit by 62%. With that increase comes a significant increase in royalties to landowners. Last year geologists estimated that a well might produce a little more than 3 Bcf of natural gas over 30 years with royalties to the landowner of $2.7 million over 30 years. So a landowner in 2010 with 160 acres might think that over 30 years she would receive royalties of $5.4 million. In 2011, 160 acres would support 3 wells because exploration companies are now drilling wells on every 50 acres. So a 160 acre parcel would support three wells. Using 2010 estimates, three wells would produce $8.1 million in royalties over 30 years. Suddenly royalty values have markedly increased. But that’s not the end of the story. Just this summer, geologists and appraisers have begun to estimate that a single well might produce more than 5.0 Bcf of gas over 30 years, yielding royalties of almost $3.6 million over that period of time. Consider the same 160 acre parcel discussed above, and our landowner might expect to receive $10.8 million over 30 years. Royalty values have doubled in one year. Again, is this significant? Of course it is. Federal gift taxes and estate taxes are based upon value. Today, those taxes are assessed at the rate of 35%. In just 16 short months the rate for those taxes is increasing to 55%. And if that is not bad enough, the exemption against the tax is decreasing from $10 million for a married couple to $2 million for a married couple. What does all of this mean, you ask? It’s simple, higher tax rates and higher values means that if you have no plan, your family will pay higher taxes. Under the current tax structure, our family with 160 acres will pay federal estate taxes of approximately $280,000 when the landowners die. If our landowners die in 2013, the royalty rights to 160 acres will generate a federal estate tax of $4,840,000. This is a 17 - fold increase in federal taxes. Do you have a plan? This is only the beginning of the escalation in value and taxes. As geologists continue to learn about the true potential of a gas well drilled in the Marcellus Shale region, the estimated yield of a well will increase from its present 5.0 Bcf to 6.0 Bcf and then 7.0 Bcf and maybe as high as 8.0 Bcf. With each increase, the value of royalty rights will increase and the taxes due to pass interests in royalties will increase as well. We have been anticipating these changes for two years. We have been talking about them in seminars and conference calls and in articles and alerts. These changes are beginning to impact the value of royalty rights. Can you afford not to have a plan in place to deal with these changes?
, -
-
Permalink Reply by george m vietze on
-
whttps://www.facebook.com/SLCENERGYLLC
In doing some research I came across a company, SLC Energy,LLC. that is listing new drilling projects in Erie County in Greenfield Township and Venango Township.
- The projects were listed as Adameck#2, Adameck#3, Adameck#4-horizontal,Adameck#5-horizontal, Afton#1,Afton#2,Afton#3,Chylinski#2,Chylinski#3,Chylinski#4
The links to this information:
https://www.facebook.com/SLCENERGYLLCSorry I could not get the links to print but you can type in the information.If anyone knows more information and is willing to share it will be appreciated. -
-
Permalink Reply by george m vietze on
-
They also list properties in Greene Township, Erie County,Pa. as well as Venango T/S
May#1
Hinkler#1
Turner#1
-
-
Permalink Reply by george m vietze on
-
SLC Enery,s LLC on its web site www.slcenergy.com under "Projects" list the following properties in Greenfield, Venengo and Greene Townships to drill natural gas wells.
Adameck#2
Adameck#3
Adameck#4 Horizontal
Adameck#5 Horizontal
Afton #1
Afton #2
Afton#3
Chylinski #2
Chylinski #3
Chylinski#4
May#1
Hinkler#1
Turnmer#1
-
-
Permalink Reply by george m vietze on
-
-
Top Content
Latest Activity
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
