Replies to This Discussion

Permalink Reply by Summer Johnston on July 15, 2014 at 9:54am

Reports of production published by the ODNR that many use to point out the production of the northern tier as deficient when production hasn't really been established as there hasn't been much northern tier development and the few wells that exist in the north are throttled back by the developers.

Not sure how you arrived at that conclusion other than typical pressure controls employed. The fact is BP and Halcon are in this to make money. I doubt they're interested in playing games with landowners or figuring out agendas. That's a little too high schoolish. 

BP and HK are leaving because their wells were unmitigated disasters.

There's no doubt the northernmost wells are bad, but to label everything as "unmitigated disasters" is a bit extreme. While I think some here may be a tad too exuberant, a few are a tad too pessimistic.

We can only hope for a breakthrough in the fracking technology that will improve product recovery. At this time, neither the optimists nor the pessimists can be definitively proven to be right. 

Chill. New technologies have unlocked shale in other areas. We can only hope history repeats itself here.

Permalink Reply by Sage59 on July 15, 2014 at 9:17am

Great attempt at deflection Dexter. Political ideas are like setting off a firecracker in a small room full of people. I am not arguing your reasoning, just your purpose. Is it to help soften future dealings in our area? "So I'm going to hold off on celebrating the notion of mediocrity as merely a chance for redemption." Sorry, that one just shot over my head. Above my pay grade.

What is your interest in our little part of the world if it is useless to Oil and Gas companies? A lot of us are simply refusing to accept the notion of mediocrity concerning our underlying (though possibly stubborn), minerals. We in Trumbull and surrounding counties have learned to sleep with one eye open. The school of hard knocks is a good teacher. You seem to be a very intelligent and learned individual. What about us holds your interest if there is no future value here? Why do you bother? Once again, if your purpose is to honestly educate, thank you. We will add it to, and balance it with, all of the other lessons we have learned in Northeast Ohio.

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Permalink Reply by Dexter Green on July 15, 2014 at 3:37pm

"I am not arguing your reasoning, just your purpose. Is it to help soften future dealings in our area?"

Not my job to help the area.  Not my job to hurt the area.  This is a forum for people to interact and some folks are simply putting their faith into something that I--and many others--see as an improbable possibility.

Permalink Reply by MJ on July 15, 2014 at 9:59am

"an area that is at best in an indefinite holding pattern and at worst entirely out of the picture "  & "unmitigated disasters"

 

And all this is for sale.   Really?   Wow!

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Permalink Reply by Joseph-Ohio on July 15, 2014 at 10:06am

That's what they want everybody to believe ?
Guess what ?
I've got problems with believing all of that.
Anybody else ?

Permalink Reply by Dexter Green on July 15, 2014 at 3:35pm

DVN put 225,000 acres up for sale after drilling some bad wells.  Did the act of putting them on the block make them productive?  That acreage is still unproduced because nobody was going to buy an asset that did not show potential.

Permalink Reply by Joseph-Ohio on July 15, 2014 at 10:04am

Regarding Ms. Johnston's reply; I'm only repeating what I've read here about all Utica wells being normally throttled / sometimes rested to enhance production in the future (perhaps when infra-structure comes on line).

Also, if they want to sell the wells maybe they don't want to deprive any new owner production. Who knows what the deal will look like when struck ?

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Permalink Reply by Joseph-Ohio on July 15, 2014 at 12:20pm

Maybe an overriding interest will be part of any deal ?

Maybe they entered the play with a channel partner or channel partners ?

Maybe the deal already exists or existed much earlier ?

Maybe they can sell their position for more than they paid but show a loss for a write off as well since their management, lawyers, accountants, geologists, etc. don't work for gratis but at expense ?

Who knows but the developers ?

Not I as a mere landowner that's for sure !

But, I wonder, don't you ?

Permalink Reply by Summer Johnston on July 15, 2014 at 2:55pm

Also, if they want to sell the wells maybe they don't want to deprive any new owner production.

Just my opinion but I would think any company trying to market it's wells would want to present the highest production numbers possible. I mean, who would seriously buy a well (leasehold) with the rationale that "Oh, plenty of product underground but we're saving it for you." That's called buying a pig in a poke. 

Sorry, that reasoning just doesn't work for me. 

Permalink Reply by Joseph-Ohio on July 15, 2014 at 3:05pm

Summer Johnston,

Thinking that there are ways to project Estimated Ultimate Recovery (EUR) which appears to me to be somewhat of an industry standard and accepted method of calculation; the logic of extracting the resource and selling a well minus production works less for me.

Permalink Reply by Joseph-Ohio on July 15, 2014 at 7:01am

Bullseye Sage59

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Permalink Reply by Summer Johnston on July 15, 2014 at 5:10pm

...the logic of extracting the resource and selling a well minus production works less for me.

So you're suggesting a company buy sight unseen, or in this case, buy leaseholds without production numbers to substantiate the purchase. Well, that worked in the early days when the rush was on but I suspect not now.

And really, the only "lowball" numbers that I saw thrown around on this site lately for the northern Utica were the $500 to $1000 an acre offered by Ron E's group. 

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