PA oil and Gas reports released for second half of 2011

https://www.paoilandgasreporting.state.pa.us/publicreports/Modules/...

Checked my pad with the 6 permitted wells and one says

"Rig Release 05-24-2011 Stimulation 08-20-2011 not completed" 

the others say.

"Not yet drilled Conducter set But Not drilled with big rig"

Anyone knows what that means?

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Permalink Reply by Clinton44 on February 24, 2012 at 6:32am

Debt reduction and education expenses for our son, Good luck with pipeline hope it comes soon!! Do you know the size of the unit and how many others are in it?? Our land is Clinton and Lycoming and we live in Fleetwood PA

Permalink Reply by Jason Hsu on February 24, 2012 at 6:36am

I think it's the classic 650 acre size.  I know a pipeline is a mile down the road.  

Any extra money will be good, but we really don't need it.  We do decently well for our age (Early 30's late 20's).  

Take a long vacation Eric, if you're like me, you watch this stuff like a hawk and have been waiting for it for quite a long time.

Permalink Reply by Clinton44 on February 24, 2012 at 6:53am

Yes have been keeping track of the permits, well plats etc for a while now.. All the others in the LLC with me now know why I was pushing so hard to split from the non profit and are very happy I kept them motivated to do so!! Yes extra money in these uncertain econimic times is always good. We are a little older than you guys (we have just hit the big 50) so the income should carry through our retirement, with a few vacations thrown in!! Maybe their will even be some left to leave our son!! 

Permalink Reply by Jason Hsu on February 24, 2012 at 6:56am

That's awesome Eric.  We all should have a meetup of PA gas shale owners.  

What I was hoping is that the rest of the 60 acres doesn't get unitized till later, when gas prices rise up.  The 40 acres should be able to cover mortgage and vacations.  Hopefully their estimates of the wells lasting 20-30 years. 

Permalink Reply by Clinton44 on February 24, 2012 at 7:17am

Yes, I have seen some meetings advertised on this site but haven't paid attention to where they are.. We have a boarding kennel business so its kind of hard for me to get away especially in the upcoming summer busy season.. But I am sure there are many people that would be interested in a meeting.

Our remaining acreage is abuting some nearby state land that is locked up in a drilling moratorium of some sort. Found this out from the Anadako people as well, Said they wont drill on private landnear moratorium areas cause they can drill enough wells on the private land to make it profitable, which makes sense when wells cost around 7 million to drill!! so I dont see that portion of our acreage being developed anytime soon. 

Permalink Reply by Jason Hsu on February 24, 2012 at 7:22am

I really wish we lived closer to you.  We travel quite a bit and we have a shiba inu mix that we have to kennel every now and then.  We could've made it that we could kennel the dog at your place of business and we'll check your land for you on our way up!

Permalink Reply by Clinton44 on February 24, 2012 at 7:30am

That would be cool!! If you ever pass this way and need a kennel just send me a message through the site or find our website on line and email me name of the kennel is Willorill near Fleetwood PA!!

Permalink Reply by Clinton44 on February 24, 2012 at 6:04am

Hi MLB, Not sure how long it took them for the pad, because I dont live near the area of the well site. Drilling permits were issued October 25 2010 drilling started December 3 2010. We recived first royaly payment Early February 2012 for November and December 2011 production. So it looks like in our case it was about a year from when well drilling started until the wells started production. As they were drilling there was work going on for the gathering pipelines to be tied into the main pipelines in the Hyner View Road Area. 

Permalink Reply by mlb on February 24, 2012 at 4:46am

 I also have an question which is sort of related for anyone that knows.  Say the unit is 1000 acres and I have 100 acres.  Easy to see that my take is 10%.  If I have 100 acres in a 500 acre unit then its 20%.

 

But in the larger unit you would expect more gas to be retrieved ( I am guessing ), so it should equal the smaller unit correct?  It seems that it should be apples to apples based simply on what can be produced from diff unit sizes and a larger unit should not cut your return as I see things.  Is this correct logic/math.  Thanks.

Permalink Reply by Jason Hsu on February 24, 2012 at 4:47am

It's my understanding. The larger the unit... the longer the horizontal.. Therefore more gas will be produced. 

Permalink Reply by craig on February 24, 2012 at 7:04am

Just be aware that these larger units in my area are being drilled with one horizontal to hold 800-900 acres by production. Under this scenerio, your royalties will be small until they drill more wells on the same site/unit. In the long run the payout maybe better because gas is so cheap right now.

Permalink Reply by mlb on February 24, 2012 at 7:18am

Correct, one well would pay a smaller amount but still might give 5 to 6k per 75 acres or so ( based on some numbers on this discussion so far ).   I arrive at this by the following.  If 42 acres from Erics with 5 producing wells equals about 20k per month then 1/5 ( one well ) would be 4k plus 75 acres is 45% larger so add about 1800 and you get $5800 per month per well drilled.  Of course type of gas, amounts, price etc all factor in ( or being shut in even ).  Double check my math but I think this is a good ballpark figure.

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