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
OT, Did Pin Oak also purchase the Marshlands acreage?