Leases are beginning to expire. Who is getting renewed?

We have two leases north WVA-Mon County and on in Perry Township Greene County. One lease expired last year and was not renewed. The other is a long term lease going back to the 1970's-both with EQT. The Greene county lease is with Atlas(Chevron) and is expiring 4/2013. My question is to those with leases coming up-Do you expect them to be renewed or for those who have had leases expire-I would like to see some comments. Terms on our leases-bonus payment and term 3 years were excellent.  I don't see much activity in resigning. The three properties are combined 250 acres-70-70-110

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Permalink Reply by Dan on July 25, 2012 at 4:32am

Henry,

I was told by a person in the industry that there was a pot of gold out in my back field. LOL.  I am by no means a fan of the Administration but you need to google the MD NG import terminal to find the "real" problems concerning NG exports, look for Sierra Club.  The clean air act got started because of all the deaths that occured in Donora Pa in 1948 and will soon reach it's full effect after 40 some years.  http://en.wikipedia.org/wiki/Donora_Smog_of_1948 .  It would be more logical to blame US Steel for current issues with coal.  Coal is not going away any time soon anyway.  We have way too many problems in our country today and political agendas and the passage of time have been clouding some of the real reasons.  We all need to dig deep and find all the facts concerning our problems, otherwise like the wrong person being convicted of a murder and the real killer left at large, many of or current concerns will be left broken.  I see our biggest concern being can we find political leaders that will take on important issues without always acting for public and special interest and just repeating what they think the most want to hear. 

As we think about what we will be doing this weekend, CHK aside, many energy companies are planning 30 and 50 years out.

I agree we need to stay in tune with as many issues and problems as we can.

3uq96odaochmjPermalink Reply by 3uq96odaochmj on July 26, 2012 at 5:00am

In Greene Co. - if wells are already planned and/or laterals are already drilled, probably not much interest could be had in additonal acreage.  The "boom" came and went...............

Permalink Reply by Billy Park Whyde on July 26, 2012 at 6:54pm

Just a reminder there are those of us that has not even been approached to lease as of yet! But your experience teaches us well.

Permalink Reply by Mark Duncan on July 27, 2012 at 12:22am

My lease expired in early June with XTO. They are currently drilling 1 mile from me on the Caldor Farm. They did not wish to renew. Hess land man said untill ROI begins they are selective in leases.

Permalink Reply by Mark Duncan on July 27, 2012 at 10:34am

Spoke to XTO today. He said pretty much the same thing Hess said. Untill the local Kaldor well is found to either have wet ges or dry gas XTO will probably not be leasing any more in my area. He call this timeframe the first inning in a 9 inning game. He said their hope was ofcourse wet gas and piplines and processors to follow. He did comment though that if it is indeed wet gas was here in volume as the geologists thought,

 he didn't see why anyone who wanted a lease in this county could have one.

Permalink Reply by Henry Edwards on July 28, 2012 at 12:11am

Mark where is your property. Is it in Greene county PA and if so which township

Permalink Reply by Mark Duncan on July 28, 2012 at 9:19am

Na, I'm in Ohio, Belmont County. At the corner of Pultney, Richland, and Mead Townships

Permalink Reply by Bluflame on July 28, 2012 at 10:23am

Mark,   

  I visited the Kaldor well site a few months ago and was impressed with all the dirt work that had been done. Has XTO commenced drilling as yet? I was interested to read the comment you ascribed to the XTO rep , "first inning of a 9 inning game". Was he referring to the Kaldor well specifically, or XTO's Utica venture in general?

  Gulfport should report in the next week or so results from wells in Southern Harrison and NW Belmont. Exxon is notoriously close-mouthed about reporting results. We may need to wait for Kaldor results until ODNR reports next spring. Exciting times! 

BluFlame

Permalink Reply by Mark Duncan on July 29, 2012 at 1:58am

Yes they are drilling vertiacal and my understanding is the horizontial will begin shortly. He was referring to the Utica development in general with regards to piplines and processors. He was a very knowledgable gentleman who didn't seem afraid to answer questions. He was cautious but not rude. He said  the Kaldor area was an area that they had leased enough property and the geologists were in favor of so they chose that site for drilling.

Permalink Reply by Bluflame on July 29, 2012 at 11:35am

Thanks Mark,

  If the results of these wells are good (and the Hess well in northern Belmont), activity levels in Belmont Cty both for leasing and drilling should intensify. The infrastructure items (pipelines and gas/liquids processing) are definitely in motion to come on stream next year. 

  In my opinion, the confidence level of the O&G companies concerning the Utica must be high....cost of midstream infrastructure begins with a $B. No one expends that kind of money without an excellent prospect for success.

BluFlame

015334grltd9mPermalink Reply by 015334grltd9m on July 29, 2012 at 12:55pm

I always learned to follow the money, good point bluflame.

Permalink Reply by Jack Straw on August 1, 2012 at 5:04pm

RE: "He call this timeframe the first inning in a 9 inning game."

It might be more accurate to state that we are in the first half of the first inning.

I have read the estimate that it will take 40 years to "drill up" the Marcellus in PA.

They likely said 100 years ago that it would take 40 years to "drill up" the shallow tight Bradford sands in PA. If it were not for the Marcellus, the small operators would be poking holes into the Bradford.

All we can hope for is that we still have a few teeth left in our heads to tuck into our piece of the pie when it finally gets to be our turn at the table.

 

All IMHO,

                JS

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