What's going on in your area?? any info???

Just curious...

     I am in Liberty township and a few months ago got an offer to buy my royalties for 1500 to 1800 per acre, but they would do a more in-depth look if I was serious which "mite change the numbers" slightly....even tho I am not drilled or receiving any royalties ..talked to a landsman rite b4 I contacted them and he advised caution as there will be "significant" activity in my area in the "near future"....how about it, anybody else get an offer or hear anything or see any activity here in Tioga Co. ?

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Replies to This Discussion

Permalink Reply by william Allen. Ladd on January 4, 2019 at 2:13am

Recently I have noticed very many signs at every intersection in Westfield Township of some outfit wanting to buy Oil and Gas rights from land owners.  Now I wonder just who that might be?  I never had an interest of selling mine so I never stopped to check any of these signs out.

After thinking it over,  with so many of these signs,  It would almost have to be someone that has inside information.  Who would have the resources $$$$ and information to do this?  Old Timer?   I think not!  Why not?

Something he told me in confidence not long ago.  Also his interest in the area and residents and thoughtful ness.

Granddad Ladd 

Permalink Reply by farmgas on January 3, 2019 at 7:18am
A loss for all of us!
Permalink Reply by william Allen. Ladd on January 3, 2019 at 10:51am

A much bigger loss then this site can imagine at this time

Granddad Ladd

Permalink Reply by Brian Day on January 3, 2019 at 2:05pm

Well now that's a damn shame.  The internet is no place for people with thin skin.  Heck this world is no place for people with thin skin anymore.  I doubt OT got scraped up too much; he probably just got tired of the hassle and had bigger things to devote his time to.  I do hope when things pick up, he might decide to drop back in.

Permalink Reply by Bullfrex on January 4, 2019 at 7:36am

Although GMS is not a true 'Science' blogsite, the information exchanged is indeed very useful for those of us in the Gas Patch here in Tioga Co. and the surrounding area.

I follow several true Science blogs, and it is the purpose at these blogs that discussion will in fact spark debate, which is the desired end result....getting to the truth of the matter. Many times, heated arguments ensue, but if everyone remembers that knowledge is the objective, and plays nice (no Ad Hominem attacks), there is much to be learned. 

After all, Science/Knowledge is not about being right all the time....sometimes being wrong will advance the knowledge by creating useful debate to that end.

OT will be sorely missed, but I side with Brian....hopefully he will rejoin this site in time. 

Permalink Reply by farmgas on January 4, 2019 at 8:14am

Come back OT!

I have a question which I think the members of this site could answer.   Since the main east to west DTI pipeline is near Tioga County are the gas companies operating there charged a fee by Dominion for each Mcf transmission into their pipeline?   I suspect this charge would be included in the gas company deductions percentage from gas royalties.   Is this charge based upon a price at the pipeline injection point or the Henry Hub price?

Permalink Reply by paleface on January 5, 2019 at 4:13am
Permalink Reply by paleface on January 5, 2019 at 7:29am
Permalink Reply by Jack Young on January 8, 2019 at 7:53am

I've heard second-hand that they have a preferred bidder, but that no deal has been made yet. The Marshlands package has three sources of value: 1) the leasehold acreage, 2) the existing Marcellus gas production, and 3) the pipeline network. Some potential bidders were mainly focused on one or two of these factors, and Shell really wanted someone who could use all three and would value the asset fully. My guess is that the existing production will account for up to half of the final price, but that's just speculation. Whether the Utica will be profitable to drill in that area is the key unknown. Without more drilling (and the Marcellus there appears marginal) the pipelines have limited value, so the ultimate buyer is quite likely to be the player who gives the Utica the highest odds.

Permalink Reply by Bullfrex on January 8, 2019 at 9:07am

Nice summary Jack....thank you.

Question....if the Marcellus is/might be marginal (not doubting your assessment)....how could a value be assigned to the Marshlands acreage if the Utica (if present there) has not been developed to any extent?

Me thinking out loud here and trying to understand.....having the leasehold acreage and pipeline network might not have as much value if good quantities of gas just isn't there....am I missing something?

Permalink Reply by Roy Siefert on January 8, 2019 at 10:33am

A good potion of the leasehold acreage is on undeveloped acreage in Tioga State Forest in a fairly sensitive area. I am suggesting that most companies are not willing to put up with the stricter requirements that DCNR has in their (last I knew) 77 page lease.

Permalink Reply by Jack Young on January 8, 2019 at 11:48am

No, that's correct. If you can't profitably develop new gas wells on that acreage, the pipeline network won't do anything for you but move your Marcellus gas from the old wells to market. And Roy is right that the State Forest leases aren't as valuable as the private leaseholds due to their high royalty and surface use restrictions. With the Utica in that area being very speculative, anyone who buys this acreage will be taking a gamble. Trying to decide how much to pay for the acreage (how much of a gamble is justified) is the big question all the potential buyers are wrestling with.

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