Hello, I'm new to the forum and seeking advice and insight to a recent offer from Artex in Marietta Ohio for our families property in Perry County. Artex is seeking our approval to do 3D seismic with option to lease. The Utica and Point Pleasant is excluded. Artex wants the Knox Formation. My question is are there any formations in the Knox that can be horizontally drilled. From my research Artex only drills vertical wells, but I'm just thinking of the future. Thanks in advance.

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All I can say is that from what I have heard, they are a very well run company and do what they say.  I think you are right in that they only drill verticals...they seem to quietly bumble along doing well what they know how to do if that makes any sense!

Markus, I agree with you on Artex to some point but Artex is currently drilling a well in Muskingum County with Chesapeake and Enervest into the Knox Formation. My takeaway is with Chesapeake involved I doubt they are looking to drill vertical in the future. I may be wrong!

Gary, Welcome, Perry County is part of the CHK/Enervest/Artex joint venture. Good Luck!
Ok, I'm from out of state but we returned over the 4th weekend and spoke with family and neighbors. They were skeptical of the offer and some were talking that local drillers are hearing that a horizontal Roserun well was a possibility. The lease offer does not say anything about vertical only wells.

Horizontal drilling isn't magic.  It's not always practical to apply it to certain formations.  My money is on Artex drilling conventional Rose Run wells.  Rose Run is hard without good seismic.  It's basically a wildcatter's nightmare.  Once Artex has the seismic data that they are paying a fortune for I'd bet they start drilling boring, conventional Rose Run wells like crazy.  And don't mistake conventional for low production.  A good Rose Run well on 40 acre spacing could be very, very lucrative for a landowner.  There will be conventional Rose Run wells that, on a $/ac basis, will outperform Utica/PP wells.  How much are they paying per acre if they decide to take the option to lease?

Heard $300-$500/acre. I can't confirm that.

That's pretty reasonable, actually.

I guess a landowner(0.297acre) needed to complete a RR unit was offered $2500 for a 1 year non-drilling lease recently.

Gary,

Chesapeake had leases in place in Carroll, Columbiana, Mahoning, Jefferson, Stark, Harrison, Tuscarawas, and Portage counties long before they brought in TGC to do the seismic study on those counties.

It would be in your interest to either separate the two activities, 3D Seismic study and Lease, OR define ALL the lease terms before signing an agreement that allows both.

If Artex comes out and says they only want the Knox formation run the idea about EXCLUDING ALL OTHER FORMATIONS in the lease and see what kind of response you get from them.

The ALOV Lease that Chesapeake signed back in 2011 has limitations on the formations that CHK can drill and if they put in a well, remove the drill rig, and later want to come back and drill another lower formation they have to lease the acreage all over again with another lease.

Thank You Alan Bowers, sounds familiar. Anshutz came in here and leased up nearly everything back in 2009-2010. Their $10/acre wasn't worth my time. Soon after they sold everything to Chesapeake here in Perry. I had no idea of the Artex/ Chesapeake joint venture so thank you James V and all. And yes Mr. Bowers the lease clearly excludes the Utica. Now as I think about it what is Chesapeakes intentions for the Knox. We will be on hold!

Check out the ODNR web site and run a Completions Report for your township. You want to be looking for any API # for a well issued in your township.  Back in the late 1980's and early 1990's Chesapeake Appalachia and Chesapeake AEP were drilling Clinton Wells.  You can still download all documentation filed with ODNR for each of the wells.  If you download and read the documents (they are in PDF files) you can read the reports showing what the geology is all the way down to the final depth that the well was drilled.  CHK drilled old vertical Clinton wells just as deep as some of the Utica/Point Pleasant wells that they are presently drilling.

By reading the reports it will give you some insight as to what CHK is seeing.  It won't give you the whole picture but some insight is better than none.

They have known for quite some time what is in the ground.  It just took them a while to figure out how to get it out of the ground.

Great advise Alan. Gary would your acreage be in Clayton Twsp. Perry County?
Yes, Clayton Twsp.

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