according to shaledirectories.com No price given.
“This transaction further bolsters the company’s deep Utica rights in the oil and wet gas windows of the play,” said Mark Van Tyne, Pin Oak’s chief business development officer. “The fact that the majority of the acreage is Hbp affords us time to more thoroughly evaluate the region as we high grade locations for economic development.”
The acquisition also included drilled and completed, but not online, horizontal Utica Shale wells, along with previously built, but not drilled, well pads, according to Pin Oak.
Pin Oak Energy’s net acreage position in Mercer, Crawford and Venango counties has increased to a total of 60,000, 5,500 and 7,100, respectively.
Range and Halcon also spent $$$ in Crawford and are no longer drilling there ...
They are buying leases that are all held by production of old style shallow vertical wells. That means they will get some cash flow from what these wells are producing with the addition of being able to sit on them for decades, if necessary, until the deep gas becomes worth drilling. At least that is how I see it.
No one can predict the future. Five years from now nat gas may be selling for double or even triple than it does now. If that happens, it will be drilling the Utica in these areas. But it may and probably will be longer before prices spike that high, IMO. Also depends on how many new pipelines serve the area, how many more cracker plants are built, will we convert trucks to burn LNG or CNG, and other future uses.
A lot of abandonment cost goes along with owning 'old ' wells
Is not SWEPI the exploration division of Shell, and they ARE building a cracker in the area, so why would they sell of acerage? Seems they could just sit on it for decades also until needed for their cracker. They SWEPI seems to have drilled some test wells in N Central PA and has just closed the valve and is saying "OK we know what we have, not telling you you anything else"
Shell is actively trying to sell there Utica area in nc pa.They have bids they are considering.Its like a house with a for sale sign on it.
Very few new leases in Tioga by Shell in the past few weeks ........
OT,was that meeting before the BG purchase.Since the purchase of BG Shell seems to have a different focus.
OT,BG British gas co?