Tioga PA: North Central Utica Well Results from Seneca Resources: 22.7MMcf

From the press release (with pictures of the flare at the bottom of the post):

March 05, 2015 04:15 PM Eastern Standard Time

WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)--Seneca Resources Corporation (“Seneca”), the wholly owned exploration and production subsidiary of National Fuel Gas Company (NYSE:NFG) (“National Fuel” or the “Company”) has announced initial results from a recently completed well in the Utica Shale formation in Tioga County, Pa.

Seneca recently completed an exploration well, targeted for the Utica Shale formation, on a pad located within its DCNR 007 tract in Tioga County, Pa. The well had a 24-hour peak production rate of 22.7 million cubic feet (“MMcf”) of natural gas per day. The well was drilled to a true vertical depth of approximately 12,200 feet, had a treatable lateral length of 4,640 feet, and was completed over 30 stages.

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated, “We are very pleased with the initial production results from our first Utica Shale well in Tioga County, Pa. This well, along with wells drilled by other operators in the area, have de-risked the Utica potential of our 10,000 acres on DCNR Tract 007. We estimate resource potential on this tract alone of approximately 1 trillion cubic feet. With these strong results in hand our team is evaluating options to develop this acreage in the next few years, depending on local gas prices and pipeline take-away capacity. We have additional Utica potential not only in Tioga County, but across much of our large Pennsylvania acreage position. Our next Utica exploration well is planned for fiscal 2016."

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Thanks a lot  you Jack.

Josie,

Nothing significant.  It appears Shell is pursuing due diligence matters from the Ultra Resources trade.  

Thanks Greg.

Antiquers,

The auction kicked off Feb 1st.  It is a single auction, containing both the Tioga and Potter deep rights.  I have heard that its conclusion is slated for 8-10 weeks, but knowing that these things usually take longer, I would not be surprised if it ran 12-14 weeks before we see a press release.  

The operators are bidding on an assignment of the deep rights, the right to drill, and most likely some type of over-ride to Dominion.  It will NOT be an apples to apples comparison to a traditional lease, but nonetheless, we will get a very good idea of what operators value this acreage at in current market conditions.

My bet is the numbers will be very eye-opening.  Stay-tuned.

Thanks for the info Tim.  I will keep watching for anything else on this.

If someone owns property bordering the storage fields and its not leased you could stand a chance to get a very good lease with the company that wins the storage lease.

I'd have to agree with Jack on his point of view of current leasing. With talk of a severance tax, gas prices low despite an extremely cold winter, and given the cost of drilling and fracking a Marcellus or Utica well it makes no sense whatsoever for any company to be breaking the bank to tie up leases with so much uncertainty. It's great that the Utica is viable In Tioga and possibly other areas but the cost is too great compared to current prices. It looks great to present to share holders and for future interests but the reality is it is not economically viable for any responsible operator.

I suspect after the big push that Shell had to end the year, that it had alot to do with a competitor testing the waters and also some to do with the fact that they needed to shore up lease holds being lost to expiration. There are still alot of lands coming free from old leases but certainly not a huge amount of competition sniffing around. This is certainly not the free for all of 2008-2011. I'm sure Shell still has lease efforts ongoing but for select properties that fall into their 2015/2016 drill schedule. My opinion is anything outside of that drill schedule is on the back burner until the market and budget has more clarity. 

Jesse,

Do you want to sell?  Send me a message with your details.  I am more than happy to take your minerals off your hands, considering nothing is going to happen in years up there.

Oh thank you Timmy, but no thank you. The gas is going nowhere and if it doesn't happen in my lifetime it will in my childrens. I've already severed my OGM's into a Trust. We'll be fine. I'm not sure where your sarcasm comes from but enjoy the game. It changes at the blink of an eye. 

There are so many factors that determine where this play stands right now. Pipeline capacity, storage, rig count, market, budgets, state legislature and on and on... what really is a positive about the current conditions? Things change and it is great that the Utica is viable here but it means nothing if it doesn't make economical sense. These companies will continue to be here because they have already made the investment but the level of continued investment has guidelines.   

No sarcasm.

Just noticing a pattern with those that have 'negative' views and their lack of selling.  Usually people sell when they have a negative fundamental outlook.  And people buy when they have a positive one.  

Have to wonder when those beating the 'negative drum' end up being the BUYERS..........food for thought

If anyone would like to sell their minerals in NW Tioga, send me a message with your information, and we can have a quiet conversation.  

Here's more food for thought - a link to Tim's own efforts to sell his oil and gas rights in Potter County: http://marketplace.m*********************/ads/utica240-acres-ogms/#... You have to wonder when someone talks up a play while they're trying to dump their own holdings. And then has the nerve to accuse others of doing the same thing.

Seems Tim maybe "Tiny Tim"??????

Jack, thank you for your continued input and support.

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