In a bid to find the next big source of oil and gas in Ohio, preparations for two exploratory wells are underway in North Central Ohio.
Cabot Oil & Gas Corporation has permits from the Ohio Department of Natural Resources to build two exploratory wells in Green and Mohican townships in southern Ashland County. Drilling on the Green Township site is anticipated to begin within the week, according to Cabot officials.
It’s the first project in Ohio for Cabot, a Houston-based company. The majority of Cabot’s work has been focused on building similar wells, most recently in Susquehanna County, Pennsylvania, and using the technique known as hydraulic fracturing — more commonly known as fracking — to break through layers of rock underground to harvest trapped oil and gas.
Cabot plans to construct five exploratory wells, primarily in Ashland County, but also spreading into Holmes, Wayne, Richland and Knox counties.
If these test wells find recoverable natural gas and/or if oil and production wells are drilled, landowners across the area who sign leases with Cabot could see significant financial benefits as have been seen in the eastern Ohio gas and oil boom over the past decade. It could provide a once-in-a-lifetime boost to the area’s economic landscape.
On the other hand, some citizens are concerned about the safety of such drilling operations and fear the impact the potential industrialization would have on the local environment and quality of life. Potential pollution of the local water aquifer is another major concern.
Looking far deeper
The Ashland County search differs from previous oil and gas exploratory efforts in Ohio, going far deeper into different layers of rock formation. Cabot officials are being a bit coy about what they expect to find.
George Stark, director of external affairs of Cabot Oil and Gas, they are building the exploratory wells with the expectation of finding oil or gas in the region.
Reportably in at around $100/acre for atlest 200,000 mostly contiguous acres
NG takeaway is there obviously in the heart of Columbia’s storage and transmission lines everywhere
Oil takeaway potentially there with a Marathon line right through the acreage.
Cost to drill is low with Knox being less than 5000’
A water extraction station being built now on the Black Fork River
2D seismic has been shot
I assume they have been in MFC/Abartas war room and have samples of the Knox and hopefully not drilling on a hunch. Lol
Columbia drilling half dozen horizontal Clinton storage well in the past 1.5 years to handle the NG.
Sounds like everything is in place?
Add in the possibility that Cabot has bought out struggling local drillers and this thing just got huge.
I took a day trip to see the drilling of the Kamenik well and the building of the Loder Farms pad the other day. Cabot is doing a nice job.
We bought an additional 36 acres in Liberty Township Guernsey County just last year and obtained the mineral rights as well although the property is tied up in a terrible Artex lease from 10 years ago.
When I say terrible Artex lease I mean terrible for us, not Artex.
I am hoping that the shale here will be developed eventually although I know it is not as good as the eastern part of the county. This is the area where the shale revolution in this area began with Shell leasing a lot of acreage and then selling at a loss. Some wells were drilled and then plugged back.
I am also hoping that the lease that covers our new property will need amendments similar to what happened with the Oxford Oil leases around our Millwood township property. As I recall it was a pooling issue of some kind. When the time comes I will take all this to Barnesville and let the attorney look at it.
Anybody have an opinion on drilling in the middle/western parts of Guernsey county ?
IMOO. central Guernsey is a good oil & condensate producer,but until The Interstates and Salt Fork State Park can be drilled under, it'll stay there about 7000 ft. below. Need a new Gubner! Ascent must be hopefull about it, or have inside info, because they are busy buying up as much of the mineral rights there as they can. Carrizo's,Chesapeake's,Gulfport's.,
I also have interest in Guernsey, Noble, Morgan and Muskingum but at this point someone like Cabot would rather take a chance in places like Ashland and Richland for $100/acre than the above for much more per acre since it’s so close to the drilling. If Cabot gets oil and gas in Ashland from the Knox look out. This thing gets a lot bigger.
James - the only thing about the Knox is it is historically a structural play. It's nothing like the shale plays - Artex and Enervest were/are big players in the Knox in southern central OH. High risk, low cost, moderate reward has been the historical presence of the Knox.
I think western Guernsey, Morgan and Muskingum are too far to the west to have any real promise for the time being. The value of the condensate there significantly lower than eastern Guernsey. I think it takes a private operator, trying to do some side exploration (maybe even Artex since they own a lot of acreage over there) to see what they can get.
Do you really think Cabot is horizontally drilling trap/structures in Ashland? Sounds like a good way to lose money to me.
I spoke with a shirt last week who told me it would be 10 or 15 years depending on market prices and technological advances before the central/western part of Guernsey county would be produced.
Remember, this is the area that it all started in for Guernsey county. Back in 2006 and 2007 I was guiding a youth hunter during Spring turkey season and noticed the orange ribbons all over this large piece of property. Shell wanted the area badly and bought it before selling ti at a loss.
The gas is down there and will eventually get produced but it will take a while.