Enervest looking for joint venture partners

http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/ev-ene...

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 10, 2013 at 6:42am

Translation: We tried to sell this for waaaaaay more than it was worth and failed, so now we're going to find someone to pay us a decent amount of money for the privilege of drilling this for us.

Permalink Reply by Paul Martinelli on May 10, 2013 at 6:46am

Marcus.....are you saying that the Stark/Tusc areas won't be productive/profitable?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 10, 2013 at 9:00am

No, I'm saying that EVEP wanted to sell their whole package for $10,000/acre or more and they were summarily told by all potential suitors to stick it.  I think Tusc/Stark area, especially the eastern parts, looks like a goldmine.  The geology looks terrific.  EVEP over promised shareholders and now they're scrambling to right the ship.

Permalink Reply by Paul Martinelli on May 10, 2013 at 9:03am

OK...gottcha....and I agree with all of the above...

 

10K/acre...maybe if all the pipelies and plants....etc were all in place already......lots of infrastructure is needed.....

Permalink Reply by TM on May 10, 2013 at 9:17am

I seen CNX just entered into agreements with Markwest Utica in May for processing, fractionation, and marketing services in the Utica. I did not see that Mark west was doing gathering for them though. I wonder who will do gathering lines for CNX wells in Tusc County?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 10, 2013 at 9:28am

Blue Racer.  Just a hunch.

Permalink Reply by Paul Martinelli on May 10, 2013 at 9:33am

It could be....

See thier  presence:

 

http://www.blueracermidstream.com/where-we-work

 

The map cries out for another processing plant on the Stark/Tusc border

 

Permalink Reply by Joseph-Ohio on May 10, 2013 at 10:02am
I read that there was an interested prospective
buyer earlier and that the money was right but
there were other terms that EnerVest didn't like.

Wonder what put them off ?

Maybe they wanted a royalty override that the
prospective buyer found to be too much or
some such ?

Anybody know ?
Permalink Reply by David Mohn on May 13, 2013 at 12:24pm

I have heard others in the business say that eastern Stark and Tusc  could very well be the sweet spot for oil.  They just have to figure out the right receipt for gettig it, but once they do, those landowners might be smiling all the way to the bank.  However, I should say you shouldn't spend something till you have it in your hand and the check cleared the bank!  Here again, just my opinion!

Permalink Reply by Joseph-Ohio on May 13, 2013 at 12:38pm
We've heard / read the same regarding Ashtabula County.
Permalink Reply by Paul Martinelli on May 14, 2013 at 1:19am

David,

 

I hope you are correct.  As I am in Tusc.

 

 

Permalink Reply by Kangoo on May 14, 2013 at 1:47am

The whole situation in the oily window towards the west is that based on current technology it is lacking GOR (gas oil ratio) and pressure in order to be fully economically viable.

There might be some sweetspots in between that also could work at current technology levels (that nobody has found, yet), but this is definitely not the case for the whole area.

Otherwise oil companies would be all over the area.

Maybe in a few years there is a way to produce these resources, maybe it will take decades or maybe it will never happen.

Right now, these areas don't seem to be economic for the Utica, but as said, there is hope for the future.

People will just need some patience and shouldn't get too hopefull by companies like Enervest being very optimistic (since it's their job to talk up their portfolio)..... If we were only a few more completions/months away from this area being viable, Enervest would have sold/joint ventured the acreage months ago.....

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