Replies to This Discussion

Permalink Reply by Philip Thackray on May 24, 2014 at 4:22am

US Energy Exploration has a lot of leases in Concord twp and some in Clay, Center and Parker.

Phil

Permalink Reply by Oliver Perry on May 24, 2014 at 7:50am

Phil,

US Energy leased 51 acres near me in Venango Township back in 2012. There are numerous parcels not under lease by SWEPI that are very close to that parcel including my acreage. I haven't given up on SWEPI yet, but some competition from other drillers certainly would be a good thing.

Permalink Reply by Philip Thackray on May 24, 2014 at 8:43am

Oliver Perry,

I saw a Cherry Valley Boro lease location as I was scrolling through the US Energy Expl memorandum of leases on the Recorders site.

EM is in Allegheny and I was surprised to see what Seneca has going on in nearby counties to the north west of Butler county:

http://investor.nationalfuelgas.com/phoenix.zhtml?c=90873&p=iro...

Click Current Investor Presentation (if you haven't already seen this).

Phil

Permalink Reply by Jack Young on May 24, 2014 at 9:45am

US Energy is a small but well-established operator that focuses on shallow drilling, mainly for oil. The Schrecengost properties have produced oil for many years and Concord Township is a well-known place for shallow production. So this project is a good fit for US Energy, but unrelated to the deeper drilling that's gotten all the press in recent years. Most likely they'll be trying a shallow horizontal well in the main oil producing sand there, and if that works, will drill more wells like it.  

Permalink Reply by Philip Thackray on May 24, 2014 at 11:05am

Hi Jack,

Now I get it.  I looked at couple of the memorandum of leases and there are depth limits like "4000 feet" and "Tully limestone" that would prevent these leases from applying to the Marcellus.

They must just be coming into the area because the oldest least is like May 2013 and most leases are in 2014.

Thanks for the correction.

Phil

Permalink Reply by nitr01 on June 5, 2014 at 5:36am

They approached me back in the beginning of 2013.  I haven't signed anything yet but they have been great for getting me the information I've requested about their operation.  They have the one pad operating across from Outer Limits Pizza Shop on 38 right now.

Permalink Reply by Philip Thackray on June 5, 2014 at 5:53am

Nitr01,

What formation are they targeting?

Phil

Permalink Reply by nitr01 on June 5, 2014 at 6:02am

Depth Restriction: Lessee shall have the right to drill and produce Oil, Gas and other Hydrocarbons from the surface of the leased premises to a depth

of Four Thousand feet (4000’). Lessors expressly reserve to themselves, their heirs, successors and assigns, all oil, gas and other hydrocarbons below

That is the language that we came up with together in the most recent discussion I had with them.

Four Thousand feet (4000’); said reservation of rights by the Lessors shall include, but not be limited to the Marcellus and Utica formations.

Permalink Reply by Philip Thackray on June 5, 2014 at 6:11am

Nitr01,

I saw that wording in the Schrecengost lease.  I still wonder where they are going???

Phil

Permalink Reply by nitr01 on June 5, 2014 at 6:15am

You should be able to look up the diagram for the pad across from outer limits.  It was filed with the DEP.  Its called the Kimicata pad.

Permalink Reply by Philip Thackray on June 5, 2014 at 6:42am

Nitr01,

I found the Kimicata permit #019-22105.  US Energy Exploration Corp.  Horizontal but no mention of formation on DEP website.  US Energy has quite a few wells permitted in Concord Township.

Phil

Permalink Reply by Gas Boy on August 2, 2014 at 1:43pm

US Energy Exploration (out of Rural Valley, PA) is targeting the Speechley Sand.  In Concord Twp. the Speechley carries oil, and lies at a depth of 2,600 feet.  They are drilling horizontally in the sand.  I've heard some results after completing the well are upwards 300 to 400 barrels of oil per day.

EM Energy (former Edge Marc Energy) - from which I hear was started by a former Shell employee, Marc Edge, is a shale driller only.

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