By Bob Downing
Beacon Journal staff writer
CHK breaking camp, for all practical purposes, on new Utica action in Ohio
Good riddance.
This appears to be primarily because of bankers pounding on them.
None of the scumbagery has caught up with the shale players yet. It will
Wait till those chickens come home to roost. Wait till the people that purchased assets from them and lent money actually examine the title. When they realize that they have color of title instead of marketable title, I predict they will be very angry.
Many of the "landmen" that ginned up the garbage title for the Shale players will be called to answer as well. Mark my words, that shoe will drop. It's a major, major part of the con shale players have been running on Wall Street and the bankers.
Players in the state bar associations are boning up on their shareholders derivative law and there will be Civil RICO actions naming not only shale players but brokers as defendants. Many of the large brokers will be disclosed to have ties to the Shale players themselves. which facilitated the conspiracy.
Oh what a tangled web we weave.........
Here is the story on CHK's Utica contraction:
Chesapeake Energy to scale back Utica Shale drilling in eastern Ohio
prices for natural gas and related liquids are forcing Chesapeake Energy Corp. to cut into Ohio operations.
The Oklahoma-based energy giant said Wednesday that it intends to scale back its Utica Shale drilling in the coming months as profits drop and production continues to climb.
Chesapeake will lower the number of drilling rigs in Ohio from five to two by the middle of the third quarter and will reduce the number of Ohio crews that hydraulically fracture, or frack, the rock from four to 2.5 for the rest of 2015, the company said in an earnings call with analysts and the media.
Similar cuts are being made elsewhere, with some of the biggest reductions coming in the Eagle Ford Shale in Texas.
The company needs to maintain two drilling rigs in order to hold on to its leased acreage in eastern Ohio.
Chesapeake, the No. 1 player in the Utica Shale and No. 2 producer of natural gas in the United States, said it is has been very pleased with recent natural gas results in Columbiana County.
Three wells recently completed there show significantly more potential than nine earlier-drilled wells, spokesman Chris Doyle said.
The company is seeing a 50 percent improvement in production with the new wells, he said, and the company could expand its core area beyond neighboring Carroll County into Columbiana County.
Chesapeake is continuing to expand its laterals in Ohio to produce better results, officials said.
The company in 2012 averaged 4,900 feet per lateral. That grew to 5,150 feet in 2013 and to 6,200 feet in 2014.
Laterals likely will average about 7,900 feet with 41 frack stages in 2015, about 27 percent longer than the previous year, officials said.
Longer laterals with additional fracking pay out far more than shorter laterals, the company said.
Extending Ohio laterals will cost Chesapeake more, however. It anticipates spending $8.2 million per well in 2015, up from $6.7 million in 2013 and $7.2 million in 2014.
Chesapeake began production on 38 Utica wells in the first quarter. The average peak production of those wells was 1,272 barrels of oil equivalents per day.
Net production in the Utica Shale in the first quarter averaged about 110 thousand barrels of oil equivalents per day, an increase of 10 percent from the previous quarter, the company said.
Chief Executive Officer Doug Lawler reported that despite commodity low prices, Chesapeake’s overall production grew by 14 percent in the first quarter compared to first-quarter 2014.
Bob Downing can be reached at 330-996-3745 or bdowning@thebeaconjournal.com.
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Replies to This Discussion
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Permalink Reply by Joseph-Ohio on -
Reads like they're producing and selling more at lower prices, attempting to keep profits up (or at least flat / stable) while foregoing most new development expenses.
Another shorter way to say it would be attempting to make up losses by increasing production volume.
Do I got that right (or at least close to right) ?
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Permalink Reply by Joseph-Ohio on
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Wondering what have the (other) 'players' purchased that they now own only 'color of title' to ? Probably leasehold agreements (I'm guessing). Other things too ?
What is 'color of title' anyway ? A document that certifies you own something of value but, it's something that you can't sell without a ruling / court decision perhaps ? What else (if anything) ?
Thanks Paul B.
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Permalink Reply by Joseph-Ohio on
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Googled it.
To me, it reads like 'color of title' is something for attorneys and courts to ponder / legal fodder.
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Permalink Reply by Paul Butler on
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Mr. JoeGood afternoon
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Permalink Reply by Paul Butler on
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Good afternoon Mr. Joe:
Color of Title has no value. It's an illusion.
The land work and title the Shale Players have generated has only one value--you can wipe your backside with it. Neither the people who did the work nor the stooges that hired them are remotely qualified to do the work.
In the hands of Shale Players with larceny in their hearts, you can use it to sucker Wall Street bankers and hedge funds out of billions of dollars. That has been done.
When you have a confluence of greed, arrogance and a lack of knowledge, you only get one result--failure. That is what we are seeing in the patch right now.
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Permalink Reply by Joseph-Ohio on
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Good afternoon to you also Mr. Paul Butler.
Thank you for sharing your insight with us.
Going to try to keep an eye on all of this and it appears there's a lot to try to keep an eye on.
Good luck to all of us, and it still appears to me we need it.
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Permalink Reply by Joseph-Ohio on
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Would you say the term / phrase would be fairly described as gas and oil jargon more or less ?
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Permalink Reply by Joseph-Ohio on
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Legal jargon ?
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Permalink Reply by Joseph-Ohio on
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Further reading of other on-line references defines 'color of title' as an actual 'legal concept' (and not simply 'legal jargon').
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Permalink Reply by Dexter Green on
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"The land work and title the Shale Players have generated has only one value--you can wipe your backside with it. Neither the people who did the work nor the stooges that hired them are remotely qualified to do the work."
Do you have proof of this?
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Permalink Reply by Paul Butler on
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I'm not trying to prove anything. It's a gratuitous heads up to my friends here on Go Marcellus Shale. Take it for what's it's worth.
See Patty Webber's Post, dated May 8, 2015, supra.
Probably, Statoil paid too much because the derivative title overstated the mineral interest so they could over charge for the lease interest conveyed.
The victim gets multiple injuries from the con--- paying too much for the lease and then incorrectly paying royalty.
You don't have to be a weatherman to know which way the wind is blowing.
Sometimes you can see a lot--just by looking.
Remember, you heard it here first on Roller Derby!
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Permalink Reply by Joseph-Ohio on
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Thanks for all insight you've provided Paul.
What's your prognosis on how all of this will pan out.
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