Just curious...

     I am in Liberty township and a few months ago got an offer to buy my royalties for 1500 to 1800 per acre, but they would do a more in-depth look if I was serious which "mite change the numbers" slightly....even tho I am not drilled or receiving any royalties ..talked to a landsman rite b4 I contacted them and he advised caution as there will be "significant" activity in my area in the "near future"....how about it, anybody else get an offer or hear anything or see any activity here in Tioga Co. ?

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Eclipse uses general contractors too, and their in-house group has less experience in our area than JKLM's does. I think it's unlikely that JKLM will buy Eclipse unless it's a bargain sale, but they might trade some acreage eventually. Tenaska did a bit of drilling (some shallow) and has a nice acreage position in a couple places. But it's been for sale over the past couple years and hasn't attracted much attention. There's a core area for Utica in both Potter and Tioga County which is substantial, but not that large. Tenaska isn't in the core but Eclipse is, and I suspect they will find a buyer - it just won't be JKLM or Shell. Also, I believe that most of the old East-era vertical Marcellus wells will be plugged over the next couple years. Only a few are in areas where these old holes might be useful. Drilling patterns have changed as laterals have gotten longer - the old pads are often in the wrong places.

I disagree with many of your claims, having worked closely with Terry and his various companies for over 30 years. But you can believe what you like. It doesn't bother anyone who actually knows the story.

Before you can judge whether an operator adds value, you need to know the quality of the rock they're working with. None of us on the outside have that information, so we can't say who is making the most of their opportunities. There is no standard EUR per 1,000' of lateral that applies uniformly. People with great rock can underperform too - you and I just can't grade any of the operators in this area right now because we don't know what they have. When the day comes where Eclipse, JKLM and Shell have wells side-by-side we may get a feel for who makes the most of their opportunities. But until then, I wouldn't assume that Terry isn't fully engaged in the business or that his organization is somehow underperforming.

OT and Jack,

I have heard unsubstantiated rumors that Shell is looking to get out of their Tioga and Potter County holdings, due to less than forecast production results.

A question; being you both seem to have years' of experience in the biz, and to your knowledge, is there any indication that may be the case?

Shell had several acreage packages on the market last year - one comprised pretty much all their remaining Potter County acreage, another in southern Tioga and a third in northeastern Tioga. They didn't get offers they liked, and my impression is that they've re-evaluated some of the acreage since then and may hang onto it. But they are a company that is very focused on having the best rock, and won't stay long in a non-core area. Shell clearly now has an interest in both the Marcellus and Utica in portions of Tioga County, although those core areas may not overlap much, if at all. Shell is not a low cost producer - they need top quality acreage and a solid acreage position to make enough money to move the meter.

I don't think they really had a drilling budget for 2018. Those wells may have been leftovers from 2017. Supposedly there will be a bit of fresh money in 2019, but how much depends on natural gas prices. I wouldn't expect activity on more than an handful of pads then. It's hard to make a profit on gas these days, even with quality wells.

Met a local person today who was recently laid off after having worked for SWEPI maintenance/housekeeping.    Said person had been working in the Charleston area.

OT and Jack,

Thanks for sharing, I am sure it is appreciated by all.

Hi Old Timer.

Don't think there is any water line laid up over rt 349, over our hill and across Broughton hollow road yet.  At least not last Tuesday.   We can see A bore hole under Broughton hollow with a short pipe that is capped on both ends has been shoved through.  There was two sections of bridging work left by the road.  I presume it was to carry water pipe across the creek bed.  The next morning there was a truck parked near bridge work but  now men in sight. We presumed truck was for transportation for any workers, on our side of the hill,  back to rt 349 so they would not get stranded in case of  heavy rain.

Will try to find out more

Granddad Ladd

There was a tractor headed up to the top of hill where our property is crossed.  But it was not moving and we saw no  workers.  I presumed that the soil was just too muddy from the rain the night before. 

In addition to above posting,  however Lu and I saw two pumps side by side at the river that apparently were pushing water up the  hillside.

Granddad Ladd

Late yesterday while driving on the Ladd road We noticed that Water line had been laid maybe two thirds the way to top of hill. I presume they had run out of pipe as we saw no additional  pipe sections anywhere in the area. 

Granddad Ladd

What exactly is "fresh" water?  Any produced or flow-back water get into these impoundments?  Pipeline trenches will sometimes include two fresh water pipes, which makes "fresh" suspect. 

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