Replies to This Discussion

Permalink Reply by Tom R on November 13, 2013 at 9:16am

My most recent checks were for August production. I have the infamous "Market Enhancement Clause" in my lease so can't really give an official "at the wellhead" price but here are the numbers I have,

Chesapeake gross $2.99/mcf  net $2.23

Anadarko     gross $2.90/mcf  net $2.15

Statoil (no ded. taken) $3.044 (yes, the statement does show the 1/10's of a cent)

I'm in the southwest corner of the county, have heard that there is some price variation between areas.

Hope you find this useful

Permalink Reply by wyalusing jim on November 13, 2013 at 10:52am

quite a bit of variation for august with chk. $2.92 for s.e. bradco, $3.33 for northern Wyoming co.

tgp zone 4 (Marcellus) pricing is currently quite depressed. hopefully when the new line goes into operation this month we will see some better pricing.

wj

Permalink Reply by Todd on November 13, 2013 at 5:49pm

Thanks Tom and WJ,

This does help me plan some once my well and future wells go into production. I was mainly wondering what the price difference was between the EIA price and the wellhead price. I wonder if those price variations from county to county have anything to do with BTU content differences?

Todd

Permalink Reply by wyalusing jim on November 14, 2013 at 3:23am

tom and I are in the nepa dry gas area todd. btu content doesn't vary much up here, generally in the 1030 range, give or take a few btu's.

btu's may account for a few cents difference with dry gas, mostly up here, the major price differences are determined by the point of sale. for instance, currently there is a 60 cent difference between tgpz4 (Marcellus) at $2.71 and tgpz4 (sta-219) at $3.61. capacity is more constrained after the 219 station.

if you have wet gas, you might expect prices in excess of $4, depending on the constituent components of your gas.

wj

Permalink Reply by Todd on November 14, 2013 at 8:19am

Thanks WJ,

My property is in the northernmost county of West Virginia, WJ.  My initial well was drilled to a wet gas formation - the Upper Devonian Shale.  However, our highest amount of Gas In Place is in our dry gas Utica with a GIP very similar to the amount of dry gas in your Marcellus Shale and Chesapeake took over our original lease with Fortuna (now Talisman) and Statoil has about a 30% interest in it.  So, very similar to your conditions on the ground with our Utica.

What is this: "currently there is a 60 cent difference between tgpz4 (Marcellus) at $2.71 and tgpz4 (sta-219) at $3.61. capacity is more constrained after the 219 station."? 

How does that work?  Please explain.  Thanks for your help!  (Also, I'm counting a 90 cent difference in your two price points.)

Permalink Reply by wyalusing jim on November 14, 2013 at 9:45am

my mistake, yes 90 cents difference, and these prices swing more than the nymex that most folks look at. nymex pricing has nothing to do with wellhead pricing. currently tgpz4 (station-219) is at $3.17 and tgpz4 (Marcellus) is at $2.43. so now the difference is 74 cents.

those are 2 points on the tgp line owned by kinder morgan that passes through the heart of nepa Marcellus dry gas country.

wj

Permalink Reply by Todd on November 14, 2013 at 3:34pm

Ok, I finally figured out what tgp stands for... The Tennessee Gas Pipeline! :)

Permalink Reply by wyalusing jim on November 15, 2013 at 2:58am

sorry, yes, tgp = Tennessee gas pipeline, tgpz4 is zone 4 of the tgp.

not sure where your closest pricing point is in your part of w.v.

wj