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Permalink Reply by wyalusing jim on July 15, 2015 at 7:55am

that offering does not constitute chk/sto's total holdings in Bradford and Susquehanna counties.

I suspect that like talisman and wpx, they are looking to dump poorly performing geology in the northern parts of those counties. a guess would be that the northern halves of the counties to the new York border is up for grabs on the cheap.

having seen the differences in production between those halves, this is completely understandable.

wj

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Permalink Reply by Frank Walker on July 15, 2015 at 8:38am

Interesting comment.  I live in that territory.  Talisman is very active here for a company looking to leave.  Have huge dump trucks, well casing trucks, going by the house all day long.  They seem to me to be drilling.  Also, earlier this year, they applied for a number of well drilling permits all around here.  Anything is possible, I guess.  They could be this active and still be leaving I suppose.  I take nothing for granted.  But it does appear at least superficially to be a bit contradictory.

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Permalink Reply by wyalusing jim on July 15, 2015 at 4:44pm

wpx sold to swn, talisman sold to repsol. where is the contradiction?

and I never said that this was junk acreage or goat pasture, just that it was performing poorly.

be advised also, that talisman had plugged and abandoned wells in the area that I mentioned before the sale.

wj

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Permalink Reply by Frank Walker on July 16, 2015 at 12:41am

The entirety of Talisman was subsumed into Repsol, but not in a manner which (so far at least) has had any impact whatsoever on Talisman Lessors or . . . apparently . . . on Talisman operations.  Talisman continues to operate out of Calgary and, here in the USA, out of Warrendale and even out of Big Flats!  In no way was the Repsol deal related to "poorly performing geology" in northern Bradford County.  Talisman is an international entity for which Bradford County is small potatoes.  For Repsol, a behemoth, all of Talisman is just another cog in their giant wheel.

What is of concern to Lessors is a sale to an entity which might, for better or worse, interpret their lease in a manner different than the previous holder of the lease.  That factor appears to be in play with the CHK sale of leased land mentioned in the OP.  That factor was not on the radar screen when Repsol bought out Talisman.

As far as Talisman "plugging" wells, be advised I have such a well located less than a mile from my home.  I know the landowner.  The well shows as having been "plugged" in state records.  In reality, the project is merely on hold owing to market conditions, and the land remains securely under lease to Talisman.  As market conditions soured commencing circa 2011 . . and thereafter . . Talisman had a number of projects underway which were halted.  Their plans changed regarding prompt completion of those wells . . again owing to market conditions.  Those wells show up today as "plugged".  They are not really abandoned, but unless the price of NG rises significantly they might as well be, at least in many instances, because there will not be much drilling . . . certainly not as much as would be the case were the price of NG higher.  However, as I wrote prior, Talisman does have at least some operations ongoing here.  I don't know the specifics, though . . possibly HBP stuff or wells to produce gas for satisfaction of existing contracts.  Some of their old wells here have really petered out.

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Permalink Reply by Mike Murphy on July 16, 2015 at 1:18am

How old are the old wells u refer to as petered out???  wells  u speaking of old verticals or new modern horizontal wells

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Permalink Reply by Frank Walker on July 16, 2015 at 1:32am

Horizontals, Mike, drilled circa 2010, early 2011.  Still producing and paying royalties . . . but a WHOLE lot less than once was the case.  

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Permalink Reply by Mike Murphy on July 16, 2015 at 2:42am

those wells could have possibilities for refracking they were probably completed with wide spaced stages and could be refracked using todays technology  some refracks have caused wells to perform better

then initial production was

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Permalink Reply by Mike Murphy on July 16, 2015 at 3:04am

The short life span of these wells, long thought to be perhaps the single biggest weakness of the shale industry, is being stretched out. Early evidence of the effects of restimulation suggests that the fields could actually contain enough reserves to last about 50 years, according to a calculation based on Wood Mackenzie Ltd and ITG Investment Research data

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Permalink Reply by wyalusing jim on July 16, 2015 at 7:11am

you know of talisman wells that are plugged (for whatever reason) I am talking about wells that have been plugged and abandoned, as in leases released. those are in northern Bradford county.

some of the wells in northern Susquehanna county that wpx sold to swn never produced an mmcf/d and within months had casing pressures under 100 lbs/sq in. chk owns wells not far from those wpx wells which have also not done well.

poorly performing geology.

something you should consider with this sale is why the operator has not bought the acreage. chief and talisman are likely the operators of most if not all of those wells. if there were value there, they would have snapped those leases up, like chief did with their wells in southern Bradford.

as far as what will happen to the lessors if/when there is a sale, if subsequent drilling is done they may well be better off than if they stayed with chk. but whether there will be more drilling is the more important question.

wj

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Permalink Reply by Mike Murphy on July 16, 2015 at 7:52am

I say there will be little development in that area for a long time in the future if wells took   there money back for a long time if they ever get all their investmena big nose dive with in a few years the investors wont gett back  of production  what the invested so not to many people would want to put money in that area when there is so much good to excellent acreage to be drilled  just like Ashtabula and trumbull counties in ohio  is not economical to continue drilling or even drill for the first time in Ashtabula and only 12 wells in trumbull BP was the first to close up shop and write the acreage off as a

lose  ..... there has been little to no new permits issued in both counties yet

this year in either county

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Permalink Reply by Tim Tarr on July 15, 2015 at 8:18am

Sooo, $1.73/Mcf cash flow. If I were in those countries I'd be going over those statements. $1.73 should be minimum net. Actually higher because of their "other expenses". Why that offering will be used in some Court cases now. Loking forward to that dance.

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Permalink Reply by Mike Murphy on July 15, 2015 at 1:24pm

, they are looking to dump poorly performing geology in the northern parts of those counties. a guess would be that the northern halves of the counties to the new York border is up for grabs on the cheap.......... if it was any good why would CHK be putting it up for sale and selectively.........and it can be produced but not economically

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