There probably will be but don't look for more than $15-25/acre. Anymore than that and the wells won't make money. These are coming in at like 75 BOPD where oily and some of the Stark are 100% gas so given that App Basin gas pricing is now NYMEX minus ~ two dollars they probably aren't commercially viable but will be someday!
I would bet that except for house lots, virtually all of Stark County is HBP.
And what wasn't HBP in 2010 was leased up by CHK in 10 year leases.
A lot of those lease were just Utica and deeper, or Utica only...
Actually when CHK came in and leased any unleased land, they would not do pugh clauses. So yes, the HBP leases they bought the deep rights and the new leases they leased the whole thing.
So here is a question. If you have previously leased your deep rights, but maintained your shallow rights. Why... or Would... it be beneficial or non-beneficial if approached, to put a Clinton well on your property at this time?
I would say it would be beneficial to have a Clinton well because you would be getting some royalities. If they ever drill the Utica, you could become part of a drilling unit and get royalities from the Utica. In reality, you could be collecting from both shallow and deep rights. Just my opinion. I don't have any hard facts, just my humble opinion.
Thanks. That is what I am looking for is other opinions. The free gas is beneficial from a shallow, and immediate royalties. Because we just don't know if the Utica will ever be explored in Stark. Didn't know in looking at the "Big Picture", if having the shallow would affect the property long term, if the deep rights lease expires.
If your deep rights are split out from your shallow rights and your deep rights lease expire then you can always lease them again. I doubt that Stark Utica will be drilled but you never know. I hope it will and I try to stay positive that it will (I have 65 acres) but I am not counting on it. Now I feel I have a better chance of getting Social Security than I do Utica royalities. Again, just my opinion.
Four years ago everyone was speculating. That's what the first 18-24 months of any shale leasing play is.