EQT appears to be paying $6,500 for lease hold rights. They need to learn to negotiate from Rice who are going to pay $7,500/acre for minerals, in fee, in a much better area.
EQT Corp. announced a $407 million deal on Monday to buy the rights to develop shale gas on some 62,500 acres in West Virginia.
The Downtown-based company, which alluded to a potential deal last week during a company earnings call, is buying the assets from Statoil USA Onshore Properties Inc. The deal includes land in Wetzel, Tyler, and Harrison counties and 31 Marcellus wells, of which 24 are currently pumping out 50 million cubic feet of natural gas daily.
Company leaders said there were a number of asset packages floating around in the market that might be attractive to EQT as it looks to strengthen its core operating area, which spans large parts of Allegheny, Washington, Westmoreland and Greene counties in southwestern Pennsylvania, and half a dozen counties in northern West Virginia.
“For the most part, we happen to be focused on transactions that are relatively small in nature,” EQT’s CEO Dave Porges told analysts last week.
The deals being looked at by the company allow it to capitalize on its current assets, he said.
The Statoil deal, for example, will allow EQT to more than double the size of the horizontal wells it had planned to drill from land it already controlled. The longer laterals will continue under its new holdings, the company said.
Isn't this how EQT wound up with all their KY acreage in the late 1970's? Bought from Statoil.
Rice lost 21 million in the first quarter, but still has shopping money to spend like a drunken sailor.
Ain't that the damndest thing?
Rice Energy reported that its natural gas production climbed in the first quarter, while profits dropped compared to a year ago.
The Canonsburg-based energy company said first quarter net production averaged 675 million cubic feet equivalent per day, a 53 percent increase over the prior year quarter and an 8 percent increase compared to fourth quarter 2015.
The company’s core assets include about 151,000 acres, most of which — about 94,000 net acres — is in the Marcellus Shale play of Washington and Greene Counties. Another 57,000 is in the Utica Shale of Ohio. The company also has 49,000 net Utica acres in Pennsylvania.
Meanwhile, Rice Energy Inc. reported a first quarter loss of 21 million. That’s down from earnings of $152,000 during the same period a year ago. The company went public in 2014.
I have a well in Greene county that Rice bought from CHK. They sent us a letter back in late summer2015 that our well was being curtailed. Since then ( 9 months) I have received 1 check for a whooping 32.00 dollars. So that's where our money went.....
Does anyone know if this includes existing leases ? I have two leases with Statoil in Wetzel county, Clay and Center districts - will these be part of the deal with EQT? How and whom will I be notified - Thanks everyone
Those will probably be included. You probably won't be notified. If the lease says you are to be notified, then you will be, but most leases don't include that.
If we ever get reform, i.e., an end to the mindless speculation and growth for oil and gas reasons, and sanity returns to the patch it will be because of the elimination of two accounting sleights of hand:
Eliminate Full Cost Accounting, which is barred/highly restricted under International Financial Reporting Standards; and
Eliminate the PUD (Proved Undeveloped Reserves) from GAAP accounting. It's history has shown it means anything you need it to mean, it's fluid, like the "Code of the West."
Those two accounting sleights of hand are largely responsible for all the funny money, dilettantes and charlatans in the Patch.
I have leases with Stat Oil in Wetzel County, WV. No one has notified me of Stat Oil pulling out of WV. I received my last payment on April 25th. Does anyone know where this will go from here? Will EQT contact me? Will production continue? My wells have been paying royalties every month for over a year now. My 5 years were up in March of this year but the lease says it continues as long as they make payments and production is in force. Anyone know how this will affect this situation? Thanks.
EQT will take over as the operator, and when they do the name on the checks will change, but that will be about it. Hopefully they won't start taking more deductions or cut back production. Keep an eye on the check stub and if you have physical access to the well keep an eye on the gauges.
My family has a lease with Statoil , Previously PetroEdge, in Tyler County, Ellsworth District. They have drilled but have not started production. Our lease of 5 years ends in June. Any idea about what might happen with that? Wow, this affects so many. If anyone hears anything, I would love an update. Thank you.
I emailed Statoil they responed that they would send letters out where need.