Low Price of O/G: Will Drilling Continue?

Seriously, does anyone think that these smaller companies will be able to wait out the low oil and gas prices? How can they drill and then wait for prices to go up? There will probably be a lot of empty hotels in Cambridge. Does anyone think the prices will ever go back up?  Fortunately, I did not go out and buy a new pick up truck.

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Permalink Reply by Dexter Green on January 12, 2015 at 7:11am

Some of these smaller operators may end up going under.  Debt has fueled the shale boom--as it fuels most booms in modern America--and price drops can cause a death spiral pretty quickly.  The major companies, like CHK, XOM, APC, SWN, et al will survive.  But companies like HK, MHR, GST, and ECR are looking down the barrel of a loaded gun if prices continue to slump through 1H15.

Permalink Reply by Dan Warner on January 13, 2015 at 5:52pm

Statoil just sent an acquaintance of mine a xmas present.

$7000/acre bonus, paid a month early, presumably to beat 2015 budget cuts.

This was a re-lease on a 5 & 5, originally Chesapeake.

Doesn't sound like they're going away, at least not for good.

Permalink Reply by Philip Brutz on January 14, 2015 at 10:48am

It looks like Eclipse is slowing down but not stopping.

http://ir.eclipseresources.com/sites/eclipseresources.investorhq.bu...

Permalink Reply by Dexter Green on January 14, 2015 at 4:31pm

Eclipse might not exist this time next year.

Permalink Reply by Susan A Tippel on January 19, 2015 at 9:57am

You are probably right. And tbey are the company that holds the lease on 16.5 acres of my land. AEU holds the rest and I have not much hope for that.

Permalink Reply by catt on January 26, 2015 at 3:07am

I think Eclipse (sooner or later) will be bought out by Antero.......but hopefully the prices will start to come back up. I don't think the prices will return to what they were at one hundred dollars a barrel but I think the new norm will be somewhere in the 70's.

Permalink Reply by BIG on January 26, 2015 at 3:16am

Catt:

What information have you seen that shows Eclipse would be bought out by Antero? 

Permalink Reply by catt on January 27, 2015 at 3:30am

BIG.. I have not seen any info....but one must realize that these smaller companies can not stay afloat if the prices of oil and gas does not rebound.....and I think  sooner or later only a few of the bigger companies will be in control. Antero recently bought  a lot of acreage in Monroe County from someone........maybe Hall or maybe Eclipse....don't know. Time will tell.

Permalink Reply by Susan A Tippel on January 27, 2015 at 4:40am

I have no proof of this, but I heard that Antero now owns 70% of Eclipse shares.

Permalink Reply by Trapper on January 27, 2015 at 4:43am
Then , on the other hand , you have big companies like Shell selling leaseholds to little fish like Rex.........
Permalink Reply by Billy Park Whyde on January 27, 2015 at 2:34pm

If so a check of the county recorders office should show the lease flipping.

Permalink Reply by Finnbear on March 3, 2015 at 4:52am

Read this report and their thoughts about Antero. Antero may well be the one who is not here next year.

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