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Permalink Reply by 0llbnp780fs53 on December 4, 2012 at 9:47pm

Everything I've seen has said VERY SLOW.  I haven't seen any forecast at or above $5 in the next 5 years.  Most of what I've seen have $6 nearly 8 years out.

 

The article is basically saying that they intend to throttle production trying to increase prices.  That means wells will not be producing any where near capacity and, likely, only enough to keep the leases in tact.  Ohio needs to define what level of production constitutes a well that is effectively shut in.  It will suck if they can turn on a single well to produce for 8 hours out of a month and use that to avoid loosing leases for being shut in for too long.

 

From the article: "One must drill the one or two year shale oil options and produce in order to convert them to open-ended arrangements." -- there are leases out there that expire for non-production, but I'm guessing that it will take a group of people to get together and try to enforce their use-it-or-loose-it clauses. 

 

I think some in Greene Twshp, Beaver County are attempting to get released from their leases for failure to produce.  It will be interesting to see how that goes. But they do not have shut in wells, they have no activity at all.

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Permalink Reply by 0llbnp780fs53 on December 4, 2012 at 10:06pm

US Energy - Short Term outlook doesn't see Well Head prices breaking $4 in all of 2013

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Permalink Reply by brat on December 5, 2012 at 11:23am

Could someone tell me what I should be presently getting for gas royalties.  This from a Clinton well ...last check from this week stated $2.61., sales period 09/12..could it be that LOW at this time?  By the way , company is Sound Energy from Dover.

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