Marcus, you shouldn't make a statement without knowing the facts. None of us really know the facts from that well. What we know is that Chesapeake invested millions in that well and hundreds of millions in Mahoning county. We also know that Hilcorp too invest and is investing hundreds of millions into Mahoning county. It is now coming out that wells are inadvertently choked back because of...........no infrastructure to deliver and process.
no production, bull, i watched as they flared this well for weeks at a time . the last flare ,after they drilled the plug, was twice the size and apeared a deep orange. is it wet gas, they know. they may not have sold into production, but i sure would have liked to know the composition of the gas they flared and the daily potential this well can produce. time will tell, the potential of this well and if the gas is wet. my bet is this gas is wet.
Are the figures released for callender yr. 2011 or through March 2012 ? If I recall the pump jack wasn't installed there until around the 1st of the year. The figures don't look all that different than a couple of the Carroll Co. wells that were also noted as "no comercial production" & had oil flowback during completion & no gas produced. What is of course different is the year & a half they worked on this thing, plus maybe the pump jack, which no other Utica's seem to have. I always figured they picked this site due it's close proximity to the large gas transmission line running through the same farm. However if it produces something that can't go into an existing line, then what ? Seems to be the #1 issue with the entire Utica at this point. infrastructure , infrastucture, & more infrastucture issues.
if it is wet gas you are correct, they would not run through this transmission line .
Here's some food for thought:
So a company wants to drill a gas well....hmmm......oh yeah , we better locate it near an existing pipeline so we can sell some while we plan and install our own infrastructure. (Wouldn't you think contracts would be signed with the pipeline company ahead of time....?) Then , lo and behold , what do you know......Oil and Wet Gas! Good news , but I can't run this stuff through their pipeline..........looks like "HBP" time until we can figure out what to do with it all!
Get ready for the next "mad rush": Infrastructure leasing.
Something else to think about. Take a look at some of those old pipeline right of way contracts. You may find clauses like " enter premises to replace, repair,maintain & lay additional pipe as may be necessary." We have one 104 years old that says just that & that option has been used more than once in that time, & it's still very much in use. All for $8 per rod paid in 1908. So remember, when you sign anything, you'll likely be bringing in a partner. For your lifetime & lifetimes to follow.
You got me thinking. There's a Tennessee Pipeline running through a few of my acres....Have never seen the contract as it was laid under a previous landowner's time. I need to contact them & see about getting a copy. They know who I am as they sent me a calendar last year. Thanks for mentioning this!
I also have the Tennesee pipe line in my property. This easment was signed years before I bought my house. What did you find out about this company ? They came to clear cut the line 2 years prior. When they came with the brush hogs and truck loads of men . They dropped the brush hog deck blades spinning in my drive way. Threw stones all over my Ford Explorer sitting there by the garage.Need less to say I told the guy on the tractor ,if he ever came to my property with out notice again. Well we will leave the story at that. Dont want to say anything about there company. Any way they always call now before they clear cut or come to inspect the area. I also receive a nice calender every year. Dont know much about them .