Chesapeake Releases Ohio Utica Production Numbers

Just released this morning. Good news for all in the wet zone of the Play.

http://www.chk.com/News/Articles/Pages/1610725.aspx

 

  • The Buell 10-11-5 8H in Harrison County, Ohio was drilled to a lateral length of 6,418 feet and achieved a peak rate of 9.5 million cubic feet (mmcf) per day of natural gas and 1,425 barrels (bbls) per day of natural gas liquids and oil (liquids), or 3,010 barrels of oil equivalent (boe) per day;
  • The Mangun 22-15-5 8H in Carroll County, Ohio was drilled to a lateral length of 6,231 feet and achieved a peak rate of 3.1 mmcf per day of natural gas and 1,015 bbls per day of liquids, or 1,530 boe per day;
  • The Neider 10-14-5 3H in Carroll County, Ohio was drilled to a lateral length of 4,152 feet and achieved a peak rate of 3.8 mmcf per day of natural gas and 980 bbls per day of liquids, or 1,615 boe per day; and
  • The Thompson 3H in Beaver County, Pennsylvania was drilled to a lateral length of 4,322 feet and achieved a peak rate of 6.4 mmcf per day of dry natural gas.

 

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Permalink Reply by Jim Litwinowicz on October 4, 2011 at 4:26am

Some units are smaller but they prefer the larger. Don't know how that works on crossing state lines. That would cause a lot more red tape.

 

Sounds like you have a decent block there. Hopefully won't take long to get a well.

Permalink Reply by craig on October 4, 2011 at 5:03am

Jim, The Tharp Unit in Beaver County Pa has part of the unit in Ohio, so splitting the unit between states is doable.

 

Permalink Reply by David Mohn on October 4, 2011 at 5:14am
Melissa, don't regret signing.  I signed also last fall and maybe we should have waited and maybe not.  the money they were offering was good at the time (1500.00) per acre and 15% royality with no deductions.  It is hard to pass that kind of money up.  it could have went sour also or the drillers might have decided they have enough acres to drill now.  Or the state could have banned fracking like New York.  I tried to weight in all the factors and only you know what was best for you.  Who knows, you might get put into a unit much quicker and have a well drilled.   Looking back, yes, we might have got more money and maybe more royality, but I am still OK with my decision.  We all just need to voice our opinions about fracking just like all the anti fracking people are doing.  We landowners also need to stand up for our rights and tell our government representatives to do their own research and will find that drilling is good for everyone.  Jobs will be coming and people will be spending money again.  So lets all stand up and let our voices be heard.  You can bet the anti fracking people are out there and base all their decisions on the science fiction movie "gasland"  
Permalink Reply by scott peterson on October 4, 2011 at 5:25am
Amen Dave....sound off to your representatives loud & clear!
Permalink Reply by David Mohn on October 4, 2011 at 5:58am
By the way, I have always wondered how much money the producer of gasland made for his movie.  Somehow I don't think he did it for free and it is alway better to sensationalize because you will get more people to pay to watch it.  Funny how so many people will wach the movie and never even go out to see if it is true.  People are so use to watching what is on TV and feel that what they see is the truth.  In that case then superman, spiderman and santa claus are for real.  I have encouraged people to take a drive over into PA where there is drilling to see for themselves how bad the land is.  All they need to do is drive though a strip mine area and then drive through an area that is being drilled for oil and gas.  Strip mines take out whole mountians.  but yet, eviromentalist aren't trying to ban strip mines?  Why???????????  Talk about water pollution?????  This is why us landowners need to stand up and be heard.  Landowners have always been quite when subdivisions are put up around us.  We don't say anything when more water runs off from these subdivisions.  We just deal with it and solve the problems.  But it is time we be heard.  We have made the investiment in our land and we need to stand up and be heard. 
Permalink Reply by Brett R Oxley on October 5, 2011 at 5:38am
I am signed with the Geatchens well block of property owners, mahoning County, Ohio, (each individually signed over a year ago before we knew better), and I can tell you (personally, not conjecture)  that EVERYONE who did not sign early has received double the signing bonus price for acreage and higher royalty percentages. I am really mad at the landman, who sold me out, after telling me he was a veteran too, and this was the best deal he could give anyone, to keep quiet about it. then he goes to both of my next door neighbors  a few months later and gives them 2x or more than he  "best dealed" to me. What a bunch of liars and thieves. This is why people are so upset with these clowns, because of their dishonesty.
Permalink Reply by Melissa on October 5, 2011 at 5:58am

We had the same thing happen.   We were brought into the attorney's office with the landman...he told us that it was the best they could do and that they were wrapping things up and most likely would be out of the area and we would lose out all together if we didn't sign.  I feel very misled.   It is also frustrating when you see in the newspaper Columbiana County "re-negotiating" their contract for their 500 acres after finding out there was Utica.   They ended up getting either 2450 or 2750 I can't recall the exact figure per acre.  Regardless.   People are getting well over a thousand more per acre and I feel like the swooped in here early on trying to swindle as many unsuspecting people as they could, knowing all along............what lay beneath.   Yes,  still made money but .....not cool to watch people making double off the same ground.

 

Permalink Reply by Mmmarkkk on October 6, 2011 at 3:58am

Have you or Brett ever bought a car or a truck?  What these guys were telling you AT THE TIME was that this was the best offer they could give you.  Two months later, the prices had gone up.  But that's the price of the day.  It's not call swindling.  It's making you an offer and you can decide to take it, or leave it, or offer a counter proposal.  Ever buy a house?  Did you go to the Seller and say "I think your house is worth $300,000" when they had it listed at $275,000?  Buying and selling is a negotiation.  If you feel that you don't know enough about selling/leasing, then don't sign up and go get educated.  Would you have felt bad if they paid you $2000 per acre and then their well came in a duster??  Bet you wouldn't give 'em their money back! 

 

Landmen are NOT obligated to tell you everything, only to live up to the contract that they sign with you. 

Permalink Reply by Melissa on October 6, 2011 at 4:27am

are you a landman?  I am completely clear as to how sales work.  I am not blaming landmen.   They are only doing what they are told to do.

What my main complaint was........that I feel pretty confident saying ...was that over a year ago.......people did not have the information that they do now for negotiating........thus.......making it easier to be "handled". 

We used an attorney.......and the landman sat at the table across from us and told us straight up........."we are going to be pulling out of here soon, you better sign now, or you may end up with nothing."

 

Permalink Reply by jeannie on October 6, 2011 at 6:27am
We signed in January, 25 acres in Osnaburg and where told the same exact thing. They were pulling up and now or never sort of thing. I asked them straight up.... and they both looked us straight in the eyes and said that was the best offer, the one even said that he would have his grandmother sign the contract we had. Hope he likes grandma. But in the end I do feel they were not completely honest.
Permalink Reply by craig on October 4, 2011 at 3:55am

I have just heard, possibly a rumor I suppose,  that The Neider well unit have received their first checks.....which was over $400/acre for a months sales. Can anyone confirm this?

 

Permalink Reply by Dan on October 6, 2011 at 8:48pm

I can't confirm what they were paid, but mathematically using the peak numbers above for the Neider well, I would come up with the following:

Actual production could average more like a 1/3 of peak during the first year.  That would give production of 1.27MMcfd and 327bod.  The unit size is 176 acres, so that's 7.20Mcfd/acre and 1.86 bod/acre for each royalty owner in the unit.  For one month (30 days) that would be 216M cu. ft. per month and 55.7 barrels per month for each acre. Market prices recently were $3.82/Mcf and $92.32/bbl, so that would mean sales of $825/acre/month for the gas and $5140/acre/month for the oil.  If the royalty owners are getting 15%, that would mean they are getting $124 for gas and $771 for oil, for a total monthly check of of $895/acre.  That's double the $400/acre rumor, but this is just a calculation done without the actual numbers.  Seems like they could be making at least that much anyway.

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