Replies to This Discussion

Permalink Reply by Jim Litwinowicz on January 10, 2013 at 1:21pm

Halcon has no cred left....if this is the sweet spot why did The Predator Company cancel so many leases in Mercer and Venango counties?

Permalink Reply by Jason Grecco on January 17, 2013 at 4:06pm

You'd have to be a proffessional gigolo to comprehend all these so called "sweet spots".

Permalink Reply by Joseph-Ohio on February 14, 2013 at 2:11am

http://www.encore-energy.com/uploads/Oil%20and%20Gas%20Investor%20_...

Another link to another report with map above.

You have to scroll down into the report to find the map.

Looks like good data to (me and) a good number of other folks who seem to be in the know.

The map data seems to me to confirm your map (@ Depolarized Farmer)

Permalink Reply by Michael Temple on February 27, 2013 at 5:50pm

Would seem that momentum in Ashtabula has slowed a bit....Will be nice to see wht Enervest gets for any acreage they may sell in Ashtabula.

Permalink Reply by Joseph-Ohio on February 28, 2013 at 12:38am

I think we need to pay close attention to that one - and we've been trying to for quite some time now.  Information is hard to come by.

For instance, one would think that if your acreage abuts an Enervest leasehold, and you're unleased, the outfit that buys your neighbors Enervest leasehold would also be interested in yours (so as to enable a larger drilling unit).

I understand that the Enervest leaseholds for sale are pretty pricey.

Stay alert to all of that kind of action and keep stirring the pot Michael.

J-O 

Permalink Reply by Michael Temple on February 28, 2013 at 12:50am

How pricey have you heard for the Enervest leaseholds in Ashtabula?

Thx

Permalink Reply by Joseph-Ohio on February 28, 2013 at 1:12am

I've read on these posts / pages $10k and up to $15k per acre (price to a Developer / Major).

I don't think a landowner could expect to be offered that much (but one would think that half as much would be realistic).

We're all ears - I'll tell you that.

I'll also write that the 'quietness' in our geography is really frustrating.

We need to recover from the recessionary period and two decades of stupid war making.

What we see is a stagnant legislative process as politicians at all levels maneuver to get in the way and make money for themselves and their friends.

Fuel costs and all other costs in turn continue to rise.

Frustrating.

Recovery is at our fingertips and being stalled / withheld.

Frustrating.

Permalink Reply by Michael Temple on February 28, 2013 at 2:31am

I have read/heard reports that prices for Ashtabula had reached as high as $4200/acre, with the likes of Halcon paying that amount during last year.

Lately, however, I have read/heard that those prices were not being currently paid, and that levels may have drifted back down to $2500ish.

I absolutely agree with you that Enervest may get a fancier price for its acreage when it sells it in bulk to another major.  And that that price may not reflect what other oil/gas companies will pay to individual landowners.

But, I was simply trying to learn if anybody could definitively point to a known transaction price for Ashtabula acreage in the past month...Either corporate transaction or individuals.

As always, thanks.

As an aside, there have been reports that across the border into Crawford and Venango counties in PA that leasing activity has accelerated in the past 4-5 months...Prominent leasing companies have been Range Resources and Cabot...Have not heard actual prices, but have heard their names.  Again, like you, just trying to figure out what the latest prices are for Ashtabula!

Permalink Reply by Depolarized Farmer on February 28, 2013 at 3:03am

Please realize that patience is your second most valuable asset behind the land you own.  Impatience will lead you to accept $2,500 per acre on a boilerplate lease, while your neighbors will later realize $4,200 per acre and a landowner friendly lease.

Please also realize that in much of Crawford County, Range already has a dominant position that keeps competitors out.  Range and Cabot are partnering together on wells in northwest PA (per Range's disclosure in their investor presentation earlier this week).  Bonus payments there obviously will be much lower, and not reflective of what may be achieved in Ashtabula County.

Permalink Reply by Michael Temple on February 28, 2013 at 3:08am

Depolarized

Thank you for those wise words. As I said, simply trying to discover what actual transactions have taken place.  I am not advocating that anybody sell or not sell at any particular price point.  Simply trying to engage in price discovery

It has certainly been encouraging to see the Utica play extend into the northern boundary with these higher prices paid.  I agree with you that patience is required.

Nevertheless, can't wait to hear what Enervest ultimately does or does not do with their Ashtabula acreage.

Permalink Reply by Joseph-Ohio on February 28, 2013 at 3:06am

Your late info. ($2500ish) is the 1st I've heard substantiating any offers at all since late last year.

Was that in writing, or just verbal ?

Last and highest figures I've heard about was $4250 and 18% for 5 years paid up (south of SR 6).

I've heard about reasons for delay such as 'lack of infrastructure to handle production', 'low geo pressure causing concern', 'not enough test bores / wells to reference', etc.  To us they're nothing but lame excuses.

If infrastructure is a problem - provide it and the problem would be solved.

Low geo pressure is not insurmountable (nodding donkeys).

Not enough test bores / wells to reference ?  Well then drill them.

The real reason I believe is intentional stalling as the government and power brokers maneuver for position and new ways to soak the taxpayer and landowners.

Permalink Reply by Michael Temple on February 28, 2013 at 3:17am

To be clear, I have not heard/seen any verified transaction.  Had only heard tht $4200 was no longer actively being offered right now.  Had heard that offers may have been lowered to $2500.

I am not trying to cause a stir or ruckus...But with the information vacuum on Enervest, I was simply and honestly trying to ask the overall community here if they knew of actual transactions.

Perhaps the truth is that the last known price paid was $4250 but nothing has occurred in a long time, either in terms of transactions or indications of prices that would be paid.

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