Spike`s Kin, your thoughts are spot on. Shallow wells that were drilled 20-50 years ago have served as "hold by production" wells for leases. Those old wells were sold by CNX, EQT & other major gas companies to companies like Diversified Energy & others, but those shallow wells still serve to HBP those leases. Marcellus Gas has merits to stand alone as major producers for shale gas by EQT & Range. It seems only CNX is committing to produce Utica gas on a major basis. They still are drilling Marcellus wells at the Beaver Run Reservoir right now in Bell Township. Utica well permits are secured with more coming. Olympus & APEX are also drilling Marcellus wells in the area. How far north will the Deep Dry Utica Fairway extend along the Armstrong & Indiana county border?
SK, who do you see as the future Utica drillers in this Deep Dry Utica Fairway? Snyder Bros seems to be most active in Armstrong County. INR seems to be getting active near Shelocta. What are your thoughts about the CNX Marchand Utica well now?
Lower Prices , which will probably happen sometime in the future will drive down share prices , so will the upcomming recession ... I do humbly predict a Market meltdown by Dec 2022 ,, probably earlier .... Oct is my 'best guess ' .... Housing will tank as Interest rates continue to climb ..... The Tech sector is already in a "Bear ' Market , and the pain will spread to other sectors ... Inflation is a Economic killer to the Working Class , Folks will need to pull back on their spending in order to pay for essentials .... Home heating Oil is over $6 .... 50% or so of Long Island use Oil Heat ..... With the average use of over 1,000 gallons per Home , the cost of heat now will be over $6,000 ... Electric and Food up as well ....
Do you really think Brandon would allow that to happen……
Ralph some things to consider:
Usually abandonment requires plugging of the well which I think might cost much more then $10,000.
Will a landowners insurance cover liability issues from operating a gas well? Consider fires, pollution from brine water spillage, medical coverage for injuries, etc.
My shallow well lease allows 200,000 cf of free gas per year. Consider what the cost of supplying your own fuel such as propane will be vs. natural gas? Divide 200,000 by 1,000 Mcf or 2,000 x what the cost for NG is locally.
My house yearly uses somewhere between 125,000-150,000 Mcf of gas yearly. Will owning your gas well match these numbers & cost? Natural gas usage can also reduce home electrical cost for refrigeration if a gas refrigerator is available in addition to heating use. Gas fueled lighting fixtures might reduce electrical cost too for outdoor lights.
Maybe an opportunity to reduce the parcel cost by requiring the owner to plug the well and absorb the cost.
There must be a source of information from previous or current owners of private wells. I do not know anyone personally who does.
Good luck! .
Great answers farmgas .. Your comments raise the question IS ' Free Gas " really 'FREE ' ??? .. I have a lot of investigating to do before writing a check ......
Free gas is when someone else owns it and gives it you...
I like your 'free gas ' comments , Farmgas ... You bring up a lot of things to consider .....A local also mentioned that the well had to be 'swabbed ' every 5 years or so ... This well is currently feeding the original farm house which will be kept by the current owners ,, the well will be disconnected by them and capped on the property currently for sale ... It seems that any future reconnection , plumbing , Filtering , Maintenance , etc is probably higher than just buying gas from a provider ... The next question I need answered is there a provider locally who would plumb their gas in ?? I don't want to consider propane as a alternative ...
Could natural gas reach $10 or more?
Gas storage this week was 80 BCF , Normally 97 BCF ,, .... Strange times , Now Summer Forecast is HOT ..... Some are projecting $15 gas ...... As an Investor I would be happy at $10 ...... RRC has had a great past 2 days ......
Natural gas was up to $13 in 2008, I think, but that didn't last long. There were leases on a lot of marginal areas that eventually expired. And people buying up old wells to clean them up and get more gas. Should be an interesting time ahead!!
Attempts to get as much gas as possible from old wells seems like a significant idea for gas companies particularly shallow gas wells. I say this as a benefit to gas companies and not directed to the marketplace.