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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EnerVest Holding On To It's Ashtabula County Leaseholds (At Least For Now) 19 Replies

Started by Joseph-Ohio. Last reply by Joseph-Ohio Nov 12.

Ashtabula County Utica Development On Hold ? ! ? 3 Replies

Started by Joseph-Ohio. Last reply by Joseph-Ohio Nov 12.

Ashtabula Pinto plant location in the harbor 15 Replies

Started by landlubber. Last reply by Joseph-Ohio Sep 7.

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 17 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.

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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.

Comment by Adal on April 29, 2014 at 4:47pm

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.

Comment by Adal on April 29, 2014 at 3:58pm

BP just announced during its first quarter report that they are pulling out and selling Trumbull County leases. 20 barrels of oil a day isn't good enough for them.

Comment by Adal on April 27, 2014 at 6:48am

The two biggest are Williamsfield and Richmond in the last year. I know a landowner in Andover Township, his 5 year lease is up this summer, was bought by Chesapeake, I'll try to find out his options.

Comment by elliemae82 on April 26, 2014 at 6:28pm

Do you know what townships they are leasing and extending leases in Adal?

Comment by Adal on April 26, 2014 at 10:20am

Three townships were targeted in 2008, Williamsfield, Andover, and Richmond. In January 2011, Chesapeake entered the picture buying leases mostly in those townships. In September 2011, they appear to have bought leases in most townships from Enervest. The CEO has said that they are trying to sell Ashtabula County leases, no takers yet. Some of those 5 year 2008 leases are expiring. Chesapeake is leasing, extending, and releasing a few leases. So when Chesapeake, Enervest, and BP talk, I'm listening.        

Comment by Adal on April 15, 2014 at 4:49pm

This is what Enervest's CEO Walker said at a gas / oil conference last fall.

The volatile oil EnerVest is exploring in the Utica refers to hydrocarbons that are in a gaseous or near-gaseous stage when trapped in a reservoir. As they are brought up to the surface, changes in temperature alter the state of these hydrocarbons and produce liquids.

"It's valuable because the price of oil is much higher than the price of natural gas and natural gas liquids," he said. However, it's much more difficult to extract oil molecules from shale than dry gas or NGLs.

Walker said his company has two test wells in the volatile window, and he believes that the rock and pressure is sufficient there to allow production. "The volatile oil window has a tremendous amount of oil in place, about 16 million barrels per section," he reported. "We just haven't scientifically figured how to get it out yet. Our industry is a very high-tech industry and we will learn how to do that."

The EnerVest CEO said he's confident the volatile oil window code could be cracked within two years. "I'm optimistic. I think that if we had to say what part of the Utica has the most upside potential, it might be the volatile oil window."

But that's probably not the case with the "black" oil deposits that border the volatile oil window, Walker said. "It's thermally immature."

Still, as technology improves, so does the potential of tapping black oil, Walker said, reminding the audience that 10 years ago, engineers thought it impossible to extract natural gas and natural gas liquids from shale.

 

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