Harpo- very interesting news! What will this mean for the other gas companies in the area like CNX & EQT? Does Infinity drill both Marcellus & Utica gas wells? How large of an area is the South Bend Storage Field? How significant are these acquisitions for Central PA?
Armstrong Co. Deed Records does not have a free online search site, as does Indiana Co. And I do not believe Jefferson Co does either. You must physically go to the court houses and research their records. It appears Infinity is a new start up company backed by private equity and/or joint venture industry money. I have been told that they plan to commence drilling operations off the storage field acreage and drill horizontal underneath same.
Thanks for the information about searching the websites for information. Sounds like Infinity could become a player in Indiana County for future gas exploration. Will they drill for Marcellus or Utica gas? I suspect gas from the Dominion wells would feed the Dominion system including the nearby NG electric power generation plant. Will new drilling permits show up as Infinity when issued? This sounds like all good news for Central PA. Thanks!
Thanks OT, I`ll give it a try. Do you know anything about Infinity? Will they just drill MS wells or Utica or both?
Infinity has acquired the rights to drill & complete both the Marcellus & Utica. What they end up drilling , if at all, is anyones guess.
Thanks OT- so what will happen if Infinity can`t create the $12-15 million needed for each Utica well? Will they then flip the leases or would Dominion get them back? Sounds like a great deal for Dominion. Maybe an opportunity for another company to buy the leases, too. Why wouldn`t one of the majors have gone after this lease?
Infinity etal are subject to the terms & conditions contained in the Farmout Agreements granted by Dominion. There is a time limit to drill & complete wells, failure to do so and rights granted revert back to Dominion. Most of the acreage around the storage field is HBP by shallow well operators. Infinity has been buying those leasehold deep rights from the various operators. APEX ENERGY acquired a similar Farmout from Dominion on its Oakford Storage Field in Westmoreland Co., and has been drilling Marcellus wells for several years now.
The South Bend Storage Field mostly in Southern Armstrong Co, and a little in Indiana Co, is in the 100" Foot Sand which is approximately 1500' and the Oakford Storage Field is in the Murrysville Sand which is approximately 2200'. Most of the Dominion Storage Leases I have seen allow for pooling & unitization only below the Onondaga Formation, therefor any drilling in the Marcellus would need "Lease Modifications" .
In the South Bend Storage , Plumcreek Twp., from a EQT well Top of Marcellus 7150', Bottom 7233'.
In the Oakford Storage , APEX well Top of Marcellus 7746' , bottom 7953', the Utica is about 13,000' plus/minus .
The buffer zone surrounding the South Bend Storage Field I believe is 3000'
Does Infinity ever partner with CNX Resources or flip leases to them? ...or the other way around? It seems they both operate in the same areas.
Sounds like good advice, OT...can a company like Infinity or others be a front leasing company for one of the majors? I understand the lease from Dominion at the Oakford Station for drilling under the storage area covers formations from the Tully Lime and below. I think the Marcellus formation is beneath the Tully Lime. I also believe the Tully Lime formation is approximately 7,050' below the land surface. Thanks OT!