Halcon is back in the area.

Some men that work for Halon stopped at my moms farm this week and then stopped at my house, they are trying to find out who owns a gas line that runs through my moms farm. I asked them why,they told me they want to run a line from the Allam well to this line so they can start selling gas. They told me this line was big enough to take gas from several wells, FWIW.

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Permalink Reply by Mark McGrail on April 26, 2014 at 1:50am

Just a thought,

If you can't sell the gas from the well you can't sell the well. So a gathering line is a logical step.

Permalink Reply by james on April 26, 2014 at 1:52am
Your right, if you can't sell it, it's no good.
Permalink Reply by james on April 26, 2014 at 1:58am
I still think they will be drilling in this area again within 2 years, Halcon leased around 3000 more acres right next to the Allam well last summer/fall and they paid the bonus money, around $10 million Halcon spent and within a few months they announced they were leaving this area because the gas was lousy. They knew the Allam results before they went and leased this other 3000 acres, so they didn't just spend another $10 million for a tax write off IMO.
Permalink Reply by james on April 26, 2014 at 1:50am
The line they are checking into is located in the Sandy Lake area, less then a mile from Hilcorps proposed 2 new well sites. Lots of activity all around our property, only problem is we aren't leased by either of these companies yet. 3 wells or proposed wells by 2 companies, Halcon and Hilcorp that are right next to our property.
Permalink Reply by deer spotter on April 26, 2014 at 2:11am

If this pipeline is in the Sandy lake area it is probably owned by National Fuel Gas. The Allam well is the best well Halcon drilled in the Utica on the flare test, remains to be seen what the decline curve will be.

Permalink Reply by Jed Clampett on April 28, 2014 at 3:25am

Seems odd to me that they are asking landowners who owns the pipe.  I would think they would have maps with the pipelines, or do research at the courthouse.

Permalink Reply by David Perotto on April 28, 2014 at 9:48am

from their website:

We hold ≈139,000 net acres in Ohio and Pennsylvania that we believe are prospective for the Utica and Point Pleasant formations. We plan to limit near-term drilling to the Southwest portion of our acreage in Trumbull and Mahoning Counties, Ohio.

This  is listed under their "non-core areas"

Permalink Reply by Samuel J. Orr on April 28, 2014 at 12:50pm

Anything Halcon is doing in Mercer or Venango Counties is only being done to buff up their holdings in an attempt to sell those holdings for the best price possible. They are a thinly capitalized company and highly leveraged. Their current drilling is being done where the geology is the very best and where the production from said wells is likely to be primarily oil. From the company's standpoint, this strategy makes the most sense. David Perotto is absolutely correct in his statement that Mercer and Venango counties are non-core assets to Halcon. I do not have much hope for any substantial drilling in the next few years in Mercer and Venango counties except for wells being drilled to better define the field and its sweet spot. Increased demand will bring higher prices and stimulate more drilling. The export of LNG will increase demand as will the progressive conversion of large trucks to LNG and CNG and the ongoing development along the Interstate Highways of necessary refueling stations for these fuels. I firmly believe  that leasing and drilling in Mercer and Venango Counties will pick up substantially over time. Optimistically I think that will occur in 2017. Pessimistically it may not occur until 2020. IMHO

Permalink Reply by David Perotto on April 28, 2014 at 1:05pm

Samuel,

I would guess the earlier for Mercer & Venango. You are correct that they are still finding their way in these areas. From all of the geology for the Utica - depth , thickness, maturity & TOC- I would suggest these areas have a lot of potential. The point pleasant is thick enough in these counties to produce, so patience is necessary. Anyone unleased, don't jump the gun and accept a poor lease. I repeat , patience. You will be rewarded. If you doubt this, visit Gulfport's presentation & study their maps and description http://files.shareholder.com/downloads/GPOR/3127405774x0x661649/425...

Permalink Reply by David Perotto on April 28, 2014 at 4:32pm

With all of the infrastructure work, I think Mercer is next. Northern Lawrence as well. Following the wet gas zone, it takes you a bit east and crosses into PA. The very earliest maps, if you recall, had the wet gas line more northerly and less east orientation.

Then onto Venango. I think Range will hit that area as they state they have thousands of HBP leases in NW Venango. Range's maps show promise for total Gas in place for Venango, potentially triple play with Utica, Marcellus (maybe thick enough) and Rhinestreet.

http://phx.corporate-ir.net/phoenix.zhtml?c=101196&p=irol-prese...

 

015334grltd9mPermalink Reply by 015334grltd9m on April 29, 2014 at 12:06am

David, Hilcorp is drilling aggresively in western Lawrence  from the south all the way north.  There is a 12" pipeline in Pulaski goin west by one of Hilcorps first wells in Lawrence.  This pipe seemed to be place is a ROW when hooking up smaller old ROW pipe. This big pipe is exposed on both sides of the road , east to west sort of in anticipation of going west into Mahoning and Trumbull.

Permalink Reply by deer spotter on April 29, 2014 at 12:41am

David I would agree with you, however I believe the curve of the wet dry gas line will shift further south east in Venango County than Range has in their presentation. Both the Marcellus and the Utica in Venango are over 1200 BTUS. Eastern Clarion and eastern Forest Counties the Marcellus is also wet. Chevron has Two permits for the Burkett shale from the Broious pad that already has a Marcellus and Utica well in the southeastern part of Venango co. Marcellus is appox. 110' thick in the center of Venango co.

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