Halcon, is not to drill anymore "shit#y wells." BP is rumored to be selling off, earthquakes all over the northern Utica, and the well results are not impressive. What a thorough propaganda war we have up here. What is a lowly landowner to do up in the northern Utica? "You get off the computer and ...........ROAD TRIP."
Yeah, that is what I did yesterday. in the last few weeks as I mentioned here during my self-imposed banishment from GMS, I was, because of my engineering training following new pipelines hooking up my company's first well in Columbiana. Folks, nothing beats the on-the-ground surveillance, which gave me the right timing as they ran pipe to Ohio Land Management's first well.
So this time I said to myself, since the earthquakes in Poland, let me see first hand the energy companies fleeing and running from the northern Utica. People, I remember, all the crying a year ago when the Lawrence county groups were wailing against no action in their county. So first I drove to Edinburg on 224, and "BOOM," 24" pipeline drilled under the Mahoning river, and what appears to be a new pad on the Hoffmaster old property. Pulled in Edinburg, saw and old man standing around, in front of his house watching pipeline work, he told me how he soon is to be getting royalties and he reminded me of the $800 million powerplant going in his little community. At the pipe depot, Action-Jackson was going crazy as pipe was being trucked out to continue to supply the pipeline going north to Mercer.
I jumped back into my Frontier and headed north on 551, "BOOM!", you won't believe the Action-Jackson going on at the Whiting/McConahy multi-well site up there, the whole farming area looks like and industrial center. And, the pipeline was up there already in a matter of weeks. Just like the Teegarden in Columbiana, they need the pipelines to TRULY let the minerals flow BRO.
From there, I went west towards Villa Maria to check on the Baird road pad they just put in closer to the Poland Landfill, wondering if the "little tremor" caused that pad to be uprooted. As I came up the hill, BOOM! Action-Jackson again, guard shack, pad full of equiptment. Walked up to the guard, a she, started begging for information, she must of liked my "secret Asian" disguise and told me that they already drilled the first lateral, What? I thought the northern Utica is Dead!
PAT IF THE NORTH WAS SO GOOD ....bp AND halcon WOULD NOT BE WALKING AWAY These companies are in the business to make money not have to take loses .....also the other companies involved up there would be drilling just like in the south ....it is not happening
In March, Halcon Resources announced suspension of oil and gas drilling operations in the Utica play and on April 28 joint-venture pipeline partners in the Bluegrass Pipeline said they ceased investment in the 1,100-mile line from Pennsylvania to the Gulf of Mexico.
The next day, BP, which opened an office in Mahoning County two years ago, said it is packing up and selling its land.
Halcon holds leases on about 143,000 acres in Pennsylvania and Ohio while BP has 84,000 acres in Ohio.
BP said it planned to take a $521M write-off (1Q) after deciding not to proceed with development in the Utica shale as a consequence of appraisal results. It said it was planning to overhaul its poorly performing shale assets.
BP representative was on Kramers show yesterday.He said BP is reorganizing for a whole new approach for the shale gas and oil drilling.There recent strategy was not working and there coming back with a whole new program. Sounds good time will tell.
Thanks for the update paleface.
News / word from yesterday as opposed to historical data from 2 1/2 months ago.
Who can tell what motivates them / what they'll come up with ?
I'll guess a good possibility would be a lot of JVs.
The utica and marcellus are not the only shale plays in the usa and why would BP be selling their utica acreage if they were coming back to try again
The Utica and other horizons in 'play' in northeast ohio are the only ones that I'm interested in (written for the benefit of any who may similarly be interested and no one else).
'Why would BP sell if they plan to come back ?' another asks the forum.
My answer / opinion on that is: I see them as being in business and open to any method to make money doing what they do. Also, who can tell what caveats their offering contains / will contain ? I can't but I'm thinking there will be plenty of them.
My guess and IMHO as always.
Thank you for that link paleface. From the 4:47 point to the 5:44 point is VERY interesting. A newly formed, funded, and separate division to handle shales in the lower 48. Maybe a second look at the Northern Utica? Maybe a new outlook and focus. I agree with you, sounds good. By the way Mike, as far as we know the acreage is not yet sold. The only thing that doesn't change is the fact that things do change.
there are many shale plays in the lower 48 states and and 500,000 dollars worth of leases is a drop in the bucket for BP and also BP is after oil not gas they have spent 43 billion dollars on the gulf of mexico mess BP has walked away from the utica and wont be back they will be where the oil is like north dakota or texas not in a gas rich formation so all u people in trumball mahoning and astubula counties keep praying but it aint there ....the lack of point pleasant is the problem
Trumbull and Ashtabula Counties are both described to be in the Rich Condensate and Oil Windows / Zones / Areas with the Point Pleasant strata present as many maps and publications have described / indicated.
Those aren't dreams to be 'prayed' for, rather they are facts.
Maybe it wont be BP alone who develops it but I'll stick my neck out a little and predict they'll maintain at least an overriding royalty interest in the leaseholds they own and as I understand are offered for sale.
All only IMHO as always.
You are so very right - this was all determined millions of years ago. The best thing to do for all landowners/ mineral owners is to be supportive of one another, regardless of location, with the hope that all of the play is developed from the "core" to the marginal areas over time - and as technology allows. I have said it before but the entire Basin is full of opportunity. I thought GMS was to provide a platform for such owners to share information, not bash one another or talk about extreme politics (beyond policy impacting the development of the play) or brag about their windfalls.