Jefferson County O & G activity

I would like to learn about the current status of all O&G activity in Jefferson County, PA - specifically the Henderson Township region, Punxsutawney and Big Run locations.  Would welcome all e-mail replies!

Jim

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015334grltd9mPermalink Reply by 015334grltd9m on August 17, 2014 at 9:24am
A few unconventional wells around the county. Curious myself, where is your acreage and how much? Also I maybe visiting the cty this Wednesday.
Permalink Reply by farmgas on August 17, 2014 at 1:35pm

Consol CNX Gas is active in that area plus in Northern Indiana County, too.   Check the DEP website for locations of the well pads.   Anyone know how well these wells are doing?  How about future plans for drilling in the area?

Permalink Reply by Buddy on August 17, 2014 at 1:47pm

If you "report back" after visiting the area, Ron, I would be interested if you hear/ see/ find out about anything about the forgotten county,,, Clarion County, between Venango and Jefferson.   Our properties are in NE Clarion County, very close to Jefferson County.  I've heard that we are on the 'wrong side' of the Clarion River.  I have also heard we have three levels (at least) of gas and it is only a matter of time before it is drilled.  The counties in this area could certainly use an economic boost.  

015334grltd9mPermalink Reply by 015334grltd9m on August 17, 2014 at 3:37pm
My interest is to check out acreage for a bankruptcy case. Straw is most likely correct, my investment strategy may have to be conservative there.
Permalink Reply by Jack Straw on August 17, 2014 at 2:44pm

Jefferson County is Dry Gas .... the money in 2014 (and likely 2015, 2016 ... ?) is in the wet gas and oily areas.

It is not a message I enjoy stating but ... I believe that there will be minimal activity in the Dry Gas areas that are not super productive .... not until Natural Gas settles in at at least $6/mcf for an extended period of time. Not the message, I like to send ... but one that I believe to be realistic. 

At one of the PA hubs last week Natural Gas brought $0.15 /mcf on the spot market .... that is right 15 cents an mcf. Just one trade, in an oversupplied hub ... but these sort of happenstances scare the heck out of operators.

The good days will come for Jefferson County .... but patience will be required (those good times are not yet 'right around the corner').

I may be a Cassandra; but do not consider myself to be a false Cassandra.

All IMHO,

                  JS

Permalink Reply by farmgas on August 17, 2014 at 3:15pm

It seems EQT has interest in Jefferson County.

Permalink Reply by Jack Straw on August 17, 2014 at 3:47pm

RE: "It seems EQT has interest in Jefferson County."

I stated that "I believe that there will be minimal activity in the Dry Gas areas that are not super productive"

I did not say that there would be NO activity; just that the amount of activity would be minimal, as would appear to recently be the case.

The attraction of the Marcellus is that the wells pay out quickly (when reasonable pricing is in existence). No one wants to sell this 'flush gas' at prices that result in a minimally economic ROI (return on investment); not if they can do better elsewhere ... or hold off and do potentially better later.

Many rigs have moved to the wet gas Marcellus, the most prolific areas of the Marcellus and the (wet) Utica,

To the further disadvantage of Jefferson County ..... from what I can discern, much (most?) of the Natural Gas produced in Jefferson County goes into the Leidy Hub in Clinton County .... sadly, gas at this hub has a tendency to sell at a severe discount to published NYMEX Henry Hub and tends to trade at a discount to other of the regional hubs. This might change should Leidy's Natural Gas end up going to Dominion's Cove Point (MD.) LNG export facility.

In addition to more activity in Jefferson County's Dry Gas area .... additional infrastructure needs to be in place to get that Natural Gas to an eager market (as opposed to a currently oversupplied Hub). Do not get me wrong, the Hub (and Natural Gas Store facilities) at Leidy are important ... but infrastructure upgrades are needed ... they are choking on what they have ... until they can accommodate more throughput (to a market eager for that additional input), Jefferson County will be sucking on the hind teat.

I will get more excited when I hear that Dominion are upgrading their pipeline which skirts Big Run .... and upgrades their infrastructure all the way to Cove Point. I anticipate that the upgrades will take eventually place .... and am more that a bit perplexed that concrete plans for such needed upgrades have not been announced .... trust me, I have been keeping my ears open ... if someone out there is aware of something that I have missed, I would love to hear about it.

Again, I am not pleased with the current situation ... but it is what it is ... I can grumble about the situation, bit that changes nothing.

All IMHO,

                 JS

Permalink Reply by farmgas on August 17, 2014 at 11:12pm

Jack, I read recently that the NRG Shawville Power Plant near Clearfield will be converted from coal  to natural gas burning.   What impact do you think this will have on Jefferson County gas development?

Permalink Reply by deer spotter on August 18, 2014 at 12:02am

Seneca Resources is drilling in northern Jefferson Co. Heath Twp. They have compression and a stripper plant in place with transmission lines to get to Leidy. Also  Seneca is active in northwest Forest and Elk Co.

Permalink Reply by Robert Matthews on August 18, 2014 at 12:40am

I am in a unit in Jefferson county Ross Twp.  The wells have been drilled for years.  We have been waiting on pipe lines.  Last year the started clearing for the pipe line but then stopped.  The trees have been cut and have been laying there for months.  Does anyone have any information on the hold up of this well?     Thanks  

Permalink Reply by farmgas on August 18, 2014 at 8:22am

Jack...what additional upgrades do you see being needed by Dominion from Punxy to the Leidy Station?  There are new additional plants constructed at both locations with increased horsepower capacity, and both were constructed to accommodate increased MS Shale Gas flow, I understand.   Also, I understand there is now in place a by-pass pipeline around the Leidy Station for gas flow to Cove Point when needed in the future.   Do you think more pipeline capacity is needed along side the existing Dominion pipelines from Punxy to Leidy?  Thanks for your thoughts...they are greatly appreciated!

015334grltd9mPermalink Reply by 015334grltd9m on August 18, 2014 at 12:30pm

Farmgas, this is what GMS should all be about, landowners helping each other.

I guess when I make an investment decision about this county, I can speak intelligently about it.

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