BP Set To Announce Plans

According to the Tribune Chronicle (Warren, OH) BP "...plans to make an announcement this morning about it's future with the Utica Shale Play "

Let's keep our fingers crossed for good news!

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Permalink Reply by Steven A Joliat on May 1, 2014 at 6:13am

Joseph, the bottomhole pressure is only one of the factors that affects the producibility of a reservoir.  If a well in the Ashtabula area also intersected a substantial natural fracture system that was oil saturated, it could naturally flow to the surface through a well.  This however, is the oil business equivalent of hitting the lottery.  I would suspect that one of the reasons that companies are reevaluating their lease positions in the Ohio's northern Utica counties is their work so far has indicated geologic and infrastructure conditions are not a favorable as they currently are in Carroll county and on to the south.  This does not say that the northern counties are ultimately uneconomic or geologically unsuitable for future production, it is more a reflection of executive level business decisions to apply a company's capital to areas under their control where they get the most return for their investments in a shorter amount of time than their competitors.  That can change with the next CEO, or if someone else who stays the course in the area finds a new sweet spot.  Most industry professionals who've been around for a decade or more would admit that most plays start out with a vision that is larger than what is ultimately developed in the initial few years.  The Utica is potentially bigger than most, but we are only a few years into its life cycle.  It may take another crazy idea to bring the northern counties into production, or years of sustained effort.  At this moment, I cannot know which is more likely.  To most landowners, the Utica has value.  When they will be able to collect on that value is the million dollar question

Permalink Reply by Joseph-Ohio on May 1, 2014 at 6:19am
Thank you Steven.
J-O
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 29, 2014 at 2:06am

Cue the next chapter of Ron's conspiracy theory in 3...2...1...

Permalink Reply by alexander on April 29, 2014 at 2:10am
I was just thinking the same thing
Permalink Reply by Bill Barnaby on April 29, 2014 at 2:15am

Right there with you!

015334grltd9mPermalink Reply by 015334grltd9m on April 29, 2014 at 2:15am

Go to my post then and I will disclose what I know about the continuation to this "PLAY."

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 29, 2014 at 2:21am

Because you know more than those super smart executives at BP?  The ones who you seem to think are a combination of Snidley Whiplash, the NSA, and Boone Pickens?  Do tell.

Permalink Reply by Mark McGrail on April 29, 2014 at 2:55am

Marcus,

Almost perfect timing, within 10 minutes.

Permalink Reply by Summer Johnston on April 29, 2014 at 3:18pm

I'd like to know what, if any, implications this may have for the leases Chesapeake optioned from Everflow Eastern in Mahoning and beyond.

 

The ones Deutsche Bank floated that half billion dollar loan on.

I wonder if Chesapeake walks on that and tells 'em to keep the leases.

Permalink Reply by Kathleen on April 30, 2014 at 2:53pm
There's a lot of columbiana minerals in that loan too.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 30, 2014 at 4:21pm

Well Deutsche Bank's chief economist was off by 1,900% on his 1Q14 GDP estimates, so I'd say they have other issues to work out first.

Permalink Reply by Mark McGrail on April 29, 2014 at 2:39pm

Do you know what they plan to do with it ?

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