EQT talks Oil Window 2/13/2014 Good or Bad?

From their CC today.
"In our Ohio Utica play, we announced a 21 well program for 2014. The intent of this program is to see if we can crack the code in the condensate light oil window. While our first three wells were frankly, mediocre, we are encouraged enough by initial results to try very specific changes to our drilling and completion design intended to improve the economics materially. If we are successful, there is significant acreage available nearby at relatively inexpensive prices largely because of the skepticism about this part of the play.
As you know, we pride ourselves on being innovative, but we need to be confident that successful innovation creates a sufficient reward and the ability to expand our Utica opportunities that economically provides that. By year end, we hope to either demonstrate sufficient improvements in which case it would make sense to add acreage, or conclude that we cannot achieve the needed improvements at this time and discontinue drilling."

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Permalink Reply by James Vanderink on February 14, 2014 at 7:46am
Either that's a typo or this play just got a lot bigger.
Permalink Reply by Eric on February 14, 2014 at 8:22am

R2,  here is the posting

https://chk.taleo.net/careersection/2/jobdetail.ftl?job=172801&...

says utica, ohio..

Permalink Reply by Dawn Blake on February 14, 2014 at 8:18am

 I have read somewhere that there are 9 permits total in  - Spencer Township? 3-4 already in place, one on 83, then Windsong, Cubbison ...around those areas, but I do not see or can not find where these other permits have been applied for? I read so much that after awhile, it all starts to blend and blur. ?

 We are in Spencer and have recently been asked if we want to sell our mineral rights. Also was told that there are only 2 buyers that are showing interest in buying mineral rights in this area. 

Permalink Reply by David Mohn on February 14, 2014 at 8:50am

It has been said to follow the money and see what the big companies are doing.  With that being said, when CHK first discovered the Utica, where did they buy up all the leases in 2010.  It was in the oil window.  Most of the land was already HBP but CHK came in and leased for 10 years the remainder of the land.  Was that a mistake on CHK part to spend that much money in the oil window and miss the sweet spots?   Maybe?  Or did CHK know something the others didn't.  They have core samples from all over the oil window.  Did they know the oil was down there and have everything leased up and then went to the NGL to drill and figure out what is the best method in the Utica before they drill the oil.  Maybe they drilled the wet gas to recoup some of their money, then come in later (years) to get the oil.   I some how have a hard time believing CHK missed the boat in 2010 when they did all their leasing.  They had a wide open window to lease and very low lease rates.  Why then did they start in Stark County and move out from there?   Only time will tell.  Maybe they really did miss the boat and lease in the wrong area?  

 

Permalink Reply by David Mohn on February 14, 2014 at 10:44am

Well I know on my lease, according to the Stark County Recorders office,  Enervest is partnered with CHK around here.  Envervest also had quite a few acres HBP on shallow wells they have.  Like I said, it will be very interesting in the next 5 years. 

Permalink Reply by James Vanderink on February 14, 2014 at 1:38pm
R2D2 and Eric, prove to me this is not a typo and I'm all over this.
Permalink Reply by Mike Fulper on February 14, 2014 at 4:16pm

I was at the recorders office today and NOT very many people researching property for leases

Things seem to have SLOWED way down in Cambridge

Spencer TWP has been mostly leased out by EQT...

Don't know of anyone else trying to get leases...

If EQT doesn't want your mineral rights... I would be a little hesitant...

Gonna be quite awhile before more leases are signed I would think...

EQT has a LOT of drilling to do already... and no assurance of BIG OIL .... yet..:)

Its there tho....they cant fool me...

Permalink Reply by bo boboski on February 15, 2014 at 12:49am

Mike; why would anyone lease when they can just BUY the mineral rights? People in Guernsey county are selling their rights, thinking that it will be years before they see a rig nearby.Now we hear reports of "mediocre" wells???  I figure they will crack the oil window code, conveniently after they have bought up most of the rights.

Permalink Reply by Mike Fulper on February 15, 2014 at 2:09am

that's what I think...They are waiting things out..

LOGIC.....they spend millions and millions.. and set up for 21 wells...

and "then" think.. oh well... "big mistake"   .. ha....

As I said..

In the late 1800's  they went down 67 feet between me and Caldwell and

took out 30,000 barrels... a DAY....

It is a VAST OCEAN OF OIL.. down there..... so what if they have to "pump"

it out.. They got big pumps./..

Big pressure not needed....

Just enough to get it to into the piping..

The longer they wait after a well is fracked.. the MORE OIL that is

"rising" in the pipe

and they will "choke" it down.. so it "flows" at a slow steady rate....duuhhhhhh

Mulitple wells will operate per the following... 

When one leg is not producing very much.. they will shut it down.. let it build back up..

Meanwhile... they put ANOTHER LEG in line.......mmmmmmmm

Just because there are 2 or 3 on one pad.. doesn't mean they will be pumping all

at the same time...

Me got TWO LEGS......over our property...

Permalink Reply by bo boboski on February 15, 2014 at 3:54am

Yea, what's the big deal about pumpjacks? Texas was always the big oil state, pumpjacks everywhere!  I heard that they can now use the natural gas coming out of the well to run the jack.like you say DUHHHH. there is a difference between a verticle well and horizontal as far as the flow of the oil, but I'm sure they already have it figured out. Maybe when Aubrey comes to town, we can talk to him, pick his brain?

Permalink Reply by Mike Fulper on February 15, 2014 at 4:28am

Not being a geologist or driller.. or much of anything.. here is how I figure it

Vertical hole goes down.... turns.....goes out about one mile horizontal..

Oil WILL FIND its way UP so far into the Vertical shaft....

Then pumped out...

any vertical well is only SUCKING up what has OOOOZED into somewhat of a "pool"....albeit small....Large in the beginning...

but Limited to what is in the "area" of the vertical shaft...

They cant "pull" IT OUT OF THE SHALE with a pump jack...at least not very easy....

SO......one MILE of Fracing.... is gonna produce VAST amounts of oil....

the Vertical shaft well has ONLY "penetrated" the  "height" of the shale..

50 foot thick...to 400 foot thick...

any fracked well is gonna produce lots of oil.....

Reading the EQT meeting info.. it seems to me to be quite clear....

They want OIL more then GAS....

That's why they are HERE .. on Cubbison rd.. and not drilling more

in PA etc for gas... They have enough gas wells....

Even without much pressure... the OIL will oooooze... into the pipe...:)

Flow will be slow.. but LOOOOOOOOOOOOOOOOOOONG lasting...:)

I got all this info from T Boone pickens....:)

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