LOL @ Marcus! Shame on you for taking information out of context and attempting to distort the facts and spin the reports to benefit your self-serving agenda! Did you happen to conveniently overlook the part about the NLG's being included within the NG numbers reported? How about the fact that most of these wells are being choked and production is being held back? Did you also happen to conveniently overlook the part about that "dud" you referred to has admitedly not even been put into production yet? I'm certain these O & G Cos. are just a little smarter with investing millions than you are Marcus. Actually, I think YOU are weak. Let me guess Marcus, you can't wait to get out there tomorrow and crow "the sky is falling" to create panic amongst unleased landowners in an effort to get them to sign a lease with you for whatever you offer? FYI, the production numbers have been discussed in at least 2 other forums on GMS since mid-morning. You are a little late with your propaganda campaign.
The Geatches well states that the only oil produced was during flowback of the well. It does not appear to be "in production". That information is from the footnote in the ODNR report. Please be careful how you read these numbers.
I sure was hoping the #s were going to be much higher. I guess all
the calm was because the #s are low! These #s along with the new
Utica Map sure paint an ugly picture. Can you put these #s into dollars
so we can understand them in compaison to the bonus payments? Should
we take more bonus and less royalty now?
The wells are being chocked / restricted on purpose for several reasons.
I would rather have a good well that lasts 15 years than a great well that lasts only 12 months.
The Mangun well is generating $350 - $400 Royalties per acre per month (+/-).
Do you really think that is bad?
But every landowner equates an offer of $15,000 for 11 acres as a joke, at best.
The O&G LEASE bought you the sub-surface mineral rights only, not my surface rights.
If you want my land too then you had better cough up more than $1,300 per acre.
"... The lease entitles a company to drill on and under your land ..."
With my lease and thousands of other signed leases, NO it does not give you the right to drill on my land without additional compensation of $30,000 for just the first 7 acres for a pad. That is not negotiable, it is written in the lease.
" ... give my best answer to questions that are asked ..."
The problem is, your answers are always biased in favor of the Driller and against the Landowner. As long as every landowner understands your bias, I have no problem with that.
Could the party being tried here not have any interest, maybe not an insider and maybe not own any land to receive benefits and maybe just a little dissapointed that he/she will not profit in any way. Money in ones hand or the hands of others can bring out green eyed envy!!!!! I would hope we all survive this potential good fortune without added stress in our lives. Our goal is hopefully good leases and something left for future generations.
Here is an article that may help with some of the perspective.
The following is an excerpt regarding the Utica;
Oil output from U.S. shale oil plays will top 800,000 bpd by 2016, according to estimates by energy consultancy Bentek Energy, doubling over four years. While initial results from five Utica shale wells last year in Ohio disappointed some analysts this week, that is unlikely to dim enthusiasm substantially for the sector.
It's not only about quantity. So far, the major shale oil crudes are light and sweet, increasingly a poor match for geared-up Midwest and Gulf Coast refiners that have invested billions of dollars to run cheaper, heavy grades -- but a godsend for the simpler plants on the East Coast.
Despite less-than-stellar initial results, Bentek executive Jim Simpson points out that the Utica formation is only 200 miles west of the East Coast refineries.
"Can the refineries be saved or is there too much of a disconnect?" said Simpson, who added that Utica crude with its 35 degree API -- a measure of density -- was a good match for East Coast appetites.
"It depends if the Utica comes online fast enough. It might make sense to spend the money on the refineries if you knew you had secure supply of crude at a WTI price," Simpson said.
Personally, I find it hard to imagine that billions of dollars having been spent for leasing, and billions of dollars being spent on infrastructure, revitalizing steel plants, cracker facilities, etc., is money being thrown down a dry hole.
I'm not expecting every well to be a record breaking winner, but I do suspect, based on the monies being tossed about, that the old days of hoping for positive results from 3 maybe 4 out of every ten wells drilled has been replaced with 6 or 7 positives out of ten - utilizing the current know-how. Just my opinion. And, well, we all know what they say about opinions, eh?
" ... Could the party being tried here not have any interest ..."
Unfortunately, "the party being tried here", has the opposite goals of us landowners. He wants Bonus Money to be low, Royalties to be low, Pad Fees to be low, everything to be low because he wants to convince us that maximizing profits for the Oil & Gas industry is best for them, him and us. He has not been able to convince me that is true for us landowners. The problem is, he is on the other side of the fence from us landowners. We own the gas and oil. We are trying to lease our gas & oil rights to the highest bidder, not to the lowest bidder.