Vista Resources applying for drilling permits in Venango County (80)

Someone posted that Vista wants 80 permits in Venango County.  My thought is they just want to hold your land with a conventional well (shallow).  From my understanding Vista is not too active in the unconventional wells, if at all.  Any thoughts from the experts??? Happy Holidays!!!!!

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Permalink Reply by p umpjack on December 11, 2012 at 7:09am

vista jv'd the cheeseman well in portersville then sold there piece out

they have been transparent in there dealings- a local company that has been quitely doing there business for years in pa  

Permalink Reply by Schnoozie on December 11, 2012 at 7:31am

They also have alot of good people working for them. In our area and shallow wells where the deep is now going to get a good look.

Permalink Reply by Samuel J. Orr on December 11, 2012 at 9:51am

I have no criticism at all of Vista. Believe them to be very reputable. Nothing at all wrong with their joint venture with Shell in Mercer County. That deal earned Vista $2000 / acre for the rights to the deep gas plus a possible percentage over-ride when Shell produces deep gas. Vista obtained a lot of cash to allow it to continue to expand its drilling of conventional wells. From what I know, its a great company. if it were publicly traded, and I had some spare money, I would buy Vista's stock. I hope my prior comments about Vista were not interpreted as being critical of Vista or their business strategy. If I were to be successful in leasing just the rights to the "deep gas', I would be hoping to lease the "shallow gas" drilling rights to Vista or a company like Vista. Because of a lack of infrastructure as regards the transmission of "wet gas", it  might well be that a landowner could obtain royalty income from conventional vertical "shallow gas" wells years before obtaining royalty income from the deep "wet gas". This is just my supposition and I may well be wrong. Since I posted the data, it is true that of the 300 O&G drilling permits issued or pending for Venango County for the year 2012,  a total of 131 of those permits are in the name of Vista. My recollection is that 63 of those 131 are pending. Those pending were all applied for on or after November 1, 2012. In summary of the 300 Venango county O&G drilling permits issued or pending for the year 2012 through December 5,2012 Vista has 131 or about 43%. If someone has the time to search each township in Venango County on e-facts, he or she could learn  the township distribution for said permits.  

 

Permalink Reply by Schnoozie on December 11, 2012 at 10:04am

It's interesting you make these nice remarks, I heard the same sentiment from the two landmen we talked to before we made our decision. Also one of the main reasons we stayed with someone local instead of getting involved with the group meetings and all their empty promises.

The locals who know this land and are experienced have the best insight. Lets all keep our fingers crossed for 2013 and Seneca's next horizontal venture in our back yard as stated in their last company report.

Go Henderson Field!!

Permalink Reply by Samuel J. Orr on December 11, 2012 at 10:45am

I did neglect to say that if had property that was unleased and i wished to lease to Vista or another conventional vertical "shallow gas driller", I would wish to make sure that the deeper strata (the shale gas strata) were reserved and specifically excluded  from the lease.

Permalink Reply by John Stanton III on December 11, 2012 at 12:15pm

Does anyone know the terms of the shallow lease that Vista is offering in Venango?  Depth?  Will they lease if another entity holds deep rights?   Contact Info?  Thanks!

Permalink Reply by petej on December 11, 2012 at 2:01pm

Samuel, John,

Not sure where Vista stands now. However, about 15 months ago we received an offer from them of $10/acre, 12.5% with deductions and co. friendly lease terms. We replied around 3:30pm one afternoon our desire to negotiate and that our STARTING POINT would be to lease them the shallow rights and we would reserve the deeper strata. It only took till 8:30am the next morning for Vista to reply that under those conditions they were no longer interested. Never heard from them again.

Permalink Reply by petej on December 11, 2012 at 2:13pm

Forgot to mention, 70 acres: aprox. 60% surounded by Vista and 20% by Range Resources. NE Mercer County.

Permalink Reply by John Stanton III on December 11, 2012 at 5:09pm

They wanted the deep rights also for $10 an acre?  

Permalink Reply by petej on December 11, 2012 at 5:31pm

Yes, everything.

Permalink Reply by Tim Tarr on December 12, 2012 at 4:42am

just my opinion but I would just laugh at them. Marcellus is iffy but Rhinestreet (West Falls formation) looks good along with other upper Devonian. Utica is similar  to east Ohio (oil?) wet gas for sure. We went through that game down here in SW Washington county. Had to wait for 3-5 years but got 10X bonus and 18% not 12.5% also only leased Marcellus, but was told they were no longer doing that when we finally got the bonus. 

Permalink Reply by Tom on December 12, 2012 at 9:46am

Vista targets mainly the Medina Sandstone formation.  It is deeper than the Marcellus and shallower than the Utica.  If you say no deep rights, that would include the Medina which is the only thing they are after.  $10 an acre and 12.5% is all any company would ever pay to drill the Medina as it is marginal to begin with.

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