JKLM Utica Well in Potter County, PA still going strong...April Production 11.4 mmcf / day

The April production just hit for the well.  342,768 mcf for 30 days, or 11.4 mmcf / day.  Basically the exact same number as March.  
Jan Production 9.2 mmcf / day, 24 days
Feb Production 9.8 mmcf / day, 29 days
Mar Production 11.4 mmcf / day, 31 days.
Despite the slowdown across the Appalachian Basin, there continues to be solid activity in Potter.  5 different operators have recorded leases in 2016.  There are a total of 8 well pads permitted, with 20+ active Utica well permits in place.  There are 5 drilled Utica wells, one producing, with another 3 to be completed in the next 45-80 days.  
In the following 12 months we expect there to be 8-10 producing Utica wells across Potter County, PA. 
There are numerous research reports out regarding the price of natural gas going higher sooner than most expected, and reports out on an abundance of pipeline capacity.  Yes, Abundance of capacity, in the next 12-24 months.  Differentials have shrunk from $1.40 to .80 over the past 12 months.  That is foretasted to continue to shrink over the next 1-2 years.  All incremental positives for the region to eventually go from exploration to development from a drilling perspective.  
The momentum across the Northern Utica shale, albeit both quiet and measured, continues as solid production reports continue.   

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How much did they sell the damn gas for?

After expenses how much did they net per mcf?

All other numbers are meaningless in a business context.

Note:  These people are supposed to be running businesses.


Leidy hub has been south of $1.

Differential 1 year ago was approx $1.40.  More recently that has shrunk to ~.90, so a move of about 50c in the right direction.  Large move from a % perspective.  

Recently, Leidy has been closer to $1.50, I have heard even $1.75.  With nat gas commodity continuing higher AND differential shrinking, this is a potentially GOOD THING> however, need to see if it stays here/moves higher, or retreats.  The retreat is no new rigs.  However, if we can hang north of $1.50, and get back above $2 in 2017 on the Leidy hub, you will slowly see activity come back up.  

It takes time.  Nothing easy.  Bottom line, both nat gas commodity, and Leidy hub are moving higher, AND the differential is forecasted to continue to shrink over the next 2 years.  All supportive of more drilling activity SLOWLY coming back, and higher royalty checks.  

Its far from perfect, we all know this.

My point about JKLM, and the Northern Utica, is that this Sweden Valley pad opens up a huge part of the map for Utica exploration.  This is much bigger than what the Synnevedst did for the Northern boundary of the play.  This is a massive positive for Potter Ct, PA, for JKLM, and for the mineral owners.  Yet it continues to get no local press, no press in PA, no press in the Marcellus/Utica rags, no domestic press, and zero international press.  Head-scratcher for sure!

This expansion of the Utica's productive footprint is one of the most significant, unheralded stories coming out of the Appalachian Basin in a long time.


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