What's going on in your area?? any info???

Just curious...

     I am in Liberty township and a few months ago got an offer to buy my royalties for 1500 to 1800 per acre, but they would do a more in-depth look if I was serious which "mite change the numbers" slightly....even tho I am not drilled or receiving any royalties ..talked to a landsman rite b4 I contacted them and he advised caution as there will be "significant" activity in my area in the "near future"....how about it, anybody else get an offer or hear anything or see any activity here in Tioga Co. ?

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Replies to This Discussion

Permalink Reply by James Young on November 4, 2013 at 6:22pm

Of course, that's the way it always has worked, they fill the underground storage facilities when the price is historically the lowest, usually during summer, and pay the landowers the current price at the time, and draw it out and sell it to the final consumers in the winter, when the price is usually the highest... 

Generally most leases really don't state at which point in the pipeline the gas price to the landowner is determined, at the point of first sale or last sale or... where ever... unless stated otherwise, it is usually the lowest price the gas is sold for to any company along the pipeline, CHPKE is famous for selling it to their "own separately owned" company.... 

Permalink Reply by Ann Ticopa on November 4, 2013 at 7:18pm

Where CHK is concerned, it doesn't necessarily matter what the lease says.

"Lawmakers divided on whether Chesapeake settlement helps landowners"

http://stateimpact.npr.org/pennsylvania/2013/11/03/lawmakers-divide...

Permalink Reply by Jack Young on November 4, 2013 at 7:42pm

Summer is often a good time to sell gas, since hot weather fuels increased power demand and thus brings on more gas-fired power plants. If gas from the Gee well is being produced and sold into storage, the landowners in that unit should start getting checks fairly soon. Gas going into storage gets purchased on the open market in competition with other gas supplies - there's no separate market for storage refill gas, and nothing for a landowner to worry about - they'll get paid as with any other sale. I have to admit that it would be very odd to be filling storage now, however, as most fields are contractually obligated to be full by a certain time as that's what they promise their customers. So this story doesn't make a great deal of sense to me.  

Permalink Reply by paleface on November 5, 2013 at 6:47am

 It is starting to look as N.C. and N.W. Tioga will be Utica and TBR. producing areas.S.E. is a proven Marcellus area,with more research and development the lines will be more clearly defined.I don't think Shell is concerned with which layer of shale will be the production layer for that area. If the Marcellus is not good in a specific area there is other layers to test and probably oil . Look at Middlebury a lack luster Marcellus area and so is Chatham with testing Shell found incredible production in the Utica and TBR.  

Permalink Reply by N Bohl on November 5, 2013 at 1:16pm

I noticed a permit for a new well just went through in Sullivan twp.. Do you think Charleston twp has done well?

Permalink Reply by Larry Linder on November 6, 2013 at 2:58pm

Heard from a reliable source that first day output from the Gee well in Middlebury was 22 million cubic feet. LL

Permalink Reply by Jack Young on November 6, 2013 at 3:10pm

Very interesting - if there's any way to get a daily figure later this week once the well has been producing for a few days and everything is stabilized, that would be even more revealing. The first day's results can be a little funny sometimes. But this is promising, even if it's not as much gas as some people thought the well might make. .

Permalink Reply by paleface on November 6, 2013 at 4:57pm

 I heard the C Gee well tested at 23 million.I also heard there is only one frack plug removed.

Permalink Reply by Jack Young on November 6, 2013 at 5:45pm

The frac plugs should have all been removed before the flowback and testing phase. That being said, some frac plugs are designed to allow gas out but prevent pressure from up-hole getting in, much like a check valve. The net effect of leaving those in would be the same, however - the entire wellbore would be cleaned up and tested at one time. You could completely isolate a zone for later testing if you wanted, but it seems unlikely here given that total productive capacity is what Shell would want to determine. The initial results certainly sound promising either way, of course, assuming they're accurate and sustainable.

Permalink Reply by Brian Day on November 6, 2013 at 8:25pm

My information is that at least part of the bore is still plugged off, perhaps as much as half.  Some wet gas may be present.

Permalink Reply by Thomas Lilli on November 6, 2013 at 9:07pm
Your getting wet gas in Middleburry Center? Do you suspect we might see that in Bloss on mt. Top road Brian?
Permalink Reply by Jack Young on November 6, 2013 at 9:37pm

It's very unlikely that there's wet gas in the Utica in this location. This is far enough east that it's fortunate that the Utica isn't completely overcooked. Remember that this well is reported to have cost roughly $20 Million. It will have to be pretty exceptional to pay off.

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