http://businessjournaldaily.com/drilling-down/hilcorp%E2%80%99s-car...

Check this out, it does not seem that the wells in any part of the Utica are not going to be productive and a money maker.

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In Trumbull County, most energy companies have met with disappointing production results, causing them to pull out of this portion of the Utica play.

Halcon Resources Kibler 2-3H well in Lordstown yielded the most natural gas compared to any other well in Trumbull County with 101.3 million cubic feet of gas during the entire quarter. A second well at the Kibler pad produced 71.1 million cubic feet of gas.

Halcon's other wells aren't as productive, according to the ODNR report. Two wells in Jackson Township in Mahoning County, the Davidson and Grenamyer wells, produced 24.3 million and 64.6 million cubic feet of gas respectfully during the quarter.

Halcon's Avalon 1H well in Vienna Township produced 42.1 million cubic feet of gas over 76 days, while its Brugler 1H well in Hartford yielded just 10.2 million cubic feet.

Halcon announced in April that it would suspend drilling operations in the northern tier of the Utica, citing poor well results.

BP America, another energy giant that zeroed in on Trumbull County, similarly announced earlier this year that it would abandon the Utica's northern tier. According to the latest production reports, four wells BP drilled in Trumbull County collectively yielded just 106.3 million cubic feet of gas -- less gas than a single Hilcorp well produced in Poland Township.              doesnt sound like these wells are going to be very profitable and moneymakers to me thats why the big boys packed it in up north    production of 500,000 feet a day is only around 2,000 dollars less royalties an expenses it would take more then 20 years to pay for itself and production will go down after the first couple of years   You need to read the whole article not just what you want to believe....the northern teir just doesnt have the numbers to drill economical wells 

Sounds more like "Hilcorp wells getting Kicked in the Butt in the Northern Utica"!

JS

I agree that the linked Business Journal Daily, Drilling Down article reads very negatively pertaining to the wells in the Northern Utica.

I think it's important to note that it's basis is 'Production' reported by the Drillers.

I also think it is very important and have read many times on these pages and elsewhere that 'Production' can be and is regularly throttled back / controlled by the Producers / Drillers / Developers to suit themselves / their business plans.

On that basis alone I can't / won't believe that may not be what is going on in the Utica Northern Tier.

If they are in fact throttling 'Production' it may be that the lack of infrastructure and their marketing strategy are a couple of reasons why.

I think it's also very important to note that many tracts of land in the Utica's Northern Tier are HBP and / or already leased which may have a lot to do with their business plans / strategies.

I also think it's very important to note (as per the latest information I'm aware of) that their (EV and CHK) positions are for sale / open to offers to JV.

http://gomarcellusshale.com/xn/detail/2274639:Comment:500643

http://gomarcellusshale.com/xn/detail/2274639:Comment:418971

http://gomarcellusshale.com/profiles/blog/list

I also note from entries on these pages that in the not too distant past Hilcorp has purchased leaseholds from CHK and EV and is involved in Joint Ventures with EV (and perhaps has also purchased leaseholds from EV).

When they purchase a leasehold I'm thinking the seller maintains interest in developed wells as part of any deal and seems to me that would factor into the sell price.

It appears to me that all of that horse trading once consumated ends up making each involved entity a partner / buddy / mate.

They all then would work together to maximize profit - one way would seem to me would be by beating up the market / landowners as much as possible.

These aren't entities looking out for the best interest of landowners rather they are entities looking out for the best interest of themselves.

Toward landowners the market is downright hostile.

All as always only IMHO.

I also think it's very important to note (as per the latest information I'm aware of) that their (EV and CHK) positions are for sale 

the producers throttle back a well to hold pressure if they just free flowed a well in a matter of no time they would have zero pressure .......and CHK and EV are walking away too .....have you seen any permits issued in the north for either company in the last year  or by any other driller ....nope  so BP HALCON SHELL and add CHK AND EV TO THE LIST  sorry but the truth sometimes hurts .....but you keep the faith .....good luck to  all up  north  the biggest problem is lack of point pleasant to the north .....if a company drills a well their first priority is to pay for their investment 5-10 million dollars is alot of money and a well that is only making 500,000 cubic feet a day is a loser  you need 5 million cubic feet a day or more  to say a well is a real money maker   

Thanks for your reply Mike, and I understand you when you write that they 'throttle back a well to hold pressure', and I don't doubt you either; but, I don't think that to be the only reason, and I wrote about a couple of other reasons they may have above.

As far as Point Pleasant presence is concerned, according to many professional references I've read, we're sitting on about an 85' thickness of it about 5800' down to it's base - so that shouldn't present a problem, as I recall reading professional references that indicate they need only about a 30' thickness to be considered viable.

We're thinking it's there in place all right but it may be more expensive to harvest (again as I've read on these pages elsewhere). Thinking they're working the easiest rock and most economical leasehold acreage first (those being the ones in southeast Ohio).

More time will tell.

If the north had any real potential OLD Aubrey McClendin be up there buying stealing and trading for every acre he could get his hands on like he is doing in the southern and west virginia areas ...just another tell tale sign of the area not being economical for further exploration ....some may think he is a nut but he knows alot about this area and should be a good lead to follow ....at some point Hillcorp will throw in the tile they can not continue to drill uneconomical wells ....their money will run out ....how many new permits have been issued for hillcorp in that area...zero in the last several months........how many new permits in that area in the last several months by any producer ....zero....how many big players have or are walking away ....my count is five 

IMHO

Maybe he's been trying to do that but without success.

Maybe 'the cartel' isn't thinking that's what should happen.

I'm thinking that there's more than just what's good for old Aubrey involved.

I think I know a lot of folks think the sun rises and sets over him but, I don't think everyone or every Gas and Oil interest / company does; as they all look out for themselves first and foremost.

Mike,

With all due respect. I believe Hilcorp will continue to develop their acreage. The company just seems to plod along always moving forward. This is just an observational opinion, no secret info from imaginary experts.

Perhaps the lull in new permits is due to a backlog of existing permits.

sure would like to see the big backlog in permits in the northern utica ...they havent issued any for up there in several months

Thinking also there's a lot of horse trading / sorting going on and pending legislation / rule changes / hearings / lawsuit decisions, etc., etc., etc.

Complicated complications.

From the report Hillcorp's wells in Poland Twp. appear to be average for the northern Utica. What is not in the report is hydrate production for the 22 days. Would like to see gas analysis.

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