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Permalink Reply by Ed C on May 19, 2013 at 12:16pm

Like I said, I don't believe Utica is dead or truly disappointing--just that it's development has slowed for a number of reasons.  Lack of infrastructure.  Lack of demand & low pricing  for NGL's, low price for gas.   All these are temporary.  Also, a game of chicken by players who will be buyers waiting for max pain on sellers.  Everyone thought the cure for low drygas prices was to drill for wet gas.  Well, last year propane went into glut.  Ethane is now being rejected and sold into the gas stream.   Propane is now being exported.  Ethane will begin to flow north in a month or two and east at the beginning of next year.

Someone will buy eventually.   Once buying starts, prices among gas co's will be bid up and landmen will start raising offers to owners.  But right now there aren't a lot of deals being done.   GPOR made a few buys around land it was already drilling, but not any major expansion outside it's footprint.   And the biggie--no foreign buying.  No Total paying $15,000 per acre

That too is temporary

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Permalink Reply by john p halloran on May 23, 2013 at 4:27am

I believe that the wells they are drilling now are quite near major pipelines that they can tap into readily. This will help defray exploration costs.

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