12 more Chesapeake Rigs coming to Eastern Ohio

Talked to someone the other day.  He said the new Plant in Hanover Twp. Columbiana County was moving along and Chesapeake is going to bring 12 more Rigs to Eastern Ohio by spring. Also Pipeline work is going to take off very soon.

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Permalink Reply by country driver on February 4, 2013 at 12:10pm

Yes, Chesapeake has drilled lots of Wells. But think of this, You own a Car, and there's no Gas Stations,Your not going to get very far ! There's no way to get the product to market now, Until they get these two Plants built and the Pipeline's in it's going to be slow. Many of the Wells they have Drilled are on Old Leases they got for penny's on the dollar. As for P.A , I was told that Beaver County was going to pick up. I don't know if it's Marcellus Wet Gas or Utica Wet Gas, I didn't ask.

Permalink Reply by Jim Litwinowicz on February 4, 2013 at 4:04pm

country driver.  You are right about the need for infrastructure. They may be waiting until everything is in place so that they get a quicker ROI. Especially considering CHK's weak financial situation.

It may also be that they do not want to drill wells and have them sit for months for fear that such delays will damage the well. Sitting too long may cause issues that  result in less production.

And it may also be that by putting in the pads these leases may now be HBPd as older leases often didn't define just what constituted proper activity to HBP a lease.

Hopefully those rigs are on the way and these pads will soon be humming with activity.

Mike MurphyPermalink Reply by Mike Murphy on February 5, 2013 at 1:08am

just by moving the surface around does not make a lease HBP there actually has to be production to hold by production

Permalink Reply by Jim Litwinowicz on February 5, 2013 at 4:00am

Mike; depends on the lease.  A lot of old leases just said something like "commencement of operations" which could be something as simple as doing site survey work or even just applying for the permit.

Permalink Reply by Tim Tarr on February 5, 2013 at 5:44am

On your lease read the:

CONSTRUTION OF LEASE and SHUT-IN terms, very carefully in lease along with any addendum(s) about shut-in limits and payments. You may even have development addendum(s).

Permalink Reply by Kristy Foster on February 5, 2013 at 7:42am

Is that because of the coal mining by Rosebud?

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