Utica

Tell me all you know about it.... I have read a couple of articles that have said compnies like CNX/Dominion are not going to be putting up new wells this year because they are heading for the utica, investing(i think this is the right number) 1.1 billion dollars into exploring that.  The uticia is underneth our land as well...which do you lease first  and can you get a compny to lease both?

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Permalink Reply by NY Gas Rights on June 28, 2011 at 10:16am
And again the LO's do NOT control the prices being offered. ONLY when other companies compete for the same acreage does the bonus offers rise. There has never ever been a LO or coalition that has created their own bonus offer just because they want "more".  And no amount of knowledge in the area can cause one company to offer any increases when there is no competition.
Permalink Reply by NY Gas Rights on June 28, 2011 at 10:09am
So?
Permalink Reply by Oil and Gas nightmare on May 29, 2011 at 7:48pm

 I have been doing a lot of research and I have found out the following information.  One Greene County has a history of producing oil, in early times when the technology wasnt available to dig deeper etc etc.... Now there are Shallow oil feilds in Greene county as well as wet gas, methane gas, coal, blah blah blah  So here are a few qoutes from web pages, (US ,dept of energy, EPA, A book written about the Geology of Greeen county, etc..so not just some blogges opinion)

 

"A type log of the southwest area where the shale is about 150 to 200 feet shows the Marcellus there tends to have very high gamma ray counts, high resistivities, high density, high porosity, Emery and Zagorski note:

The southwest region tends to have a higher concentration of organics on a per foot basis,” Zagorski said, “so it tends to have better preserved porosity and permeability, because most of the porosity and permeability are directly related to the presence or absence of total organic carbon (TOC).”

   “In the southwest,” they note, “the play tends to be over-pressured and liquids rich, and in the northeast it tends to be more over-pressured but almost all dry gas for the most part

 High organic content and the associated porosity and greater overpressure are some of the key Marcellus gas productivity factors.”

Known since the1860's as the Oil Regions, western Pennsylvania (and the adjacent area in southwestern New York) has an oil history that predates European settlement. Many of the oil reservoirs are very near the surface, and the multiple fractures in the rocks allow for oil to seep to the surface

Pennsylvania oil is very high quality crude, with considerably less impurities than most oil produced in the United States. Because less work in the refineries is necessary before the product hits the market, Pennsylvania oil is slightly more valuable than oil from most other places.

In 2001, New York State produced a fairly insignificant 166,000 barrels of oil, while Pennsylvania produced 1.6 million barrels of oil, down significantly from 3.3 million barrels in 1994. Pennsylvania's "proved reserves" (the oil that is known to still be underground) as of 2001 were10 million barrels, ranking Pennsylvania 23rd in the nation in this category

Pennsylvania oil producers operate more than 19,000 wells to produce 3.6 million barrels of Pennsylvania Grade crude oil each year.

 

Its all about knowing the geology of your area, as well as the history of year area, and looking at whats happening that you can use your powers of deduction here: ex: Chevron, Exxon, Shell, etc are now buying up lease and land all over the place, for gas they say but come on, oil has to be of interest too.  They know about the Utica and they know the president has given the Ok if you will, and then other companies that were big players in the Marcellus, are all the sudden switching to the Utica, selling their intrest to get to the Utica..Come on , why would they drop that, invest more money before they have even got back what they spent, and run to the Utica...for more gas natural gas thats deeper..NO its for OIL...and they jsut dont want people to know becasue then you would expect more for your land.....

Permalink Reply by brian kulp on May 30, 2011 at 9:52am
your right chk has a few well drilled to 11000 ft in tioga co thats deeper than the marcellus last time i checked.
Permalink Reply by Nancy LeNau on June 3, 2011 at 11:09pm
Lynn,  Great information ! Thank you !  I live in Hookstown, PA.  15050     I know that the Marcellus is thin here and I have been told that the Utica is about 400 ft. thick..... There was drilling here for oil about 100 years ago and the farmers used the oil.  At that date... they were unable to dig very deep.  Could there be oil still here that we need to put in our new lease? And how much oil ?  Thank you in advance for your help.  Any information would be of great help. Nancy
Permalink Reply by Oil and Gas nightmare on June 19, 2011 at 12:16am

Hi Nancy.. I have read the same thing with the depth being about 400 or 500 ft.. Now they say they cant really get that far down( the depth below the marcellus to get to the utica)...easily or safely kind of sorta..BUT i did reserach other oil producing areas and there are drills that go as deep as 39000 feet(think oceans).

the utica is about 12,000 feet down where i am.  I am not sure that they may all be going for the oil right now as much as they would like to lease it up pretty cheap to have for later or to flip to the big dogs comming into the game.( have you seen all the advertisements for cheveron, exxon, GE, and shell talking about natural gas and oil sands?)  I mean why in the world would these big HUGE oil companies all of the sudden be rushing up here and buying up leases and getting other properites on their own?  I do believe there is a desire to start creating the supply and demand for natural gas that will benefit their pockets, but I also feel that oil is certianly a HUGE factor as well..  Natural gas has been in PA for 100s of years, and now the oil companies are rushing in ..like heavily investing in it, there has to be more of a reason.  Look at utica developement in Canada..at least they are honest about it, they are going for oil in the utica.  I have been studying about oil sands...its very important to get familar with what they know is in your area, from years ago concerning these oil sands because that is what they have the tech, to get to now.  just google oil sand of ...blah blah county PA...you will see geology reports and books on it, some of it from like the 1930-1980's. so TOC is important, along with oil sands and depth to get to it.  Its hard to bargin for just yet because just like with fracing, they want to test it out here and there, and then when they get  proven results..THEN it wil start being all the rage(my opinion) PUBLICALLY...So i would suggest when you lease, make them include royalities for both OIL and gas...spelled out clearly, its not just black and white in my opinion because your signing an 'OIL and GAS" lease. one word left out or put in can change anything your entitled to get.  AND clearly state this is not for the utica, with the depth severence clause, so that if they do decide to go for it, they have to pay you again for it.  I just wish it didnt have to be so hard..like they are going to get millions and billions of dollars for the resources, no matter how much they invest, they will make that back 1000 times over..so why why cant the leases just be fair out the gate, for a good, worthy of the millions they will make amount... WHY WHY WHY?  I wish it was like the old days, where your word was a good as gold and a hand shake was as good as a signed contract.  YOU kept your word, and you did right by the perosn trusting you..if only.. AND DAMMIT I WISH THIS SITE HAD AUTOMATIC SPELL CHECK..IA M FAR TO LAZY TO GO BACK AND FIX ALL THE TYPOS :)

Permalink Reply by Nancy LeNau on June 26, 2011 at 12:17am
Lynn, Forget the typos......you are GREAT !!!!   Everthing you say really makes sence !  My lease will be up soon and there is the claus of 18 and 19...... Everyone says I should keep quiet and wait for the 61 days to pass after my lease is up so I can renegosiate (spell check)  HA HA ...  sweating these last few months..... I don't want to get stuck with another 5 year lease at $10.00 per acre !  Thank you for all your advice !  It is very much appreciated !   Whatever happens.... I love living in Hookstown, PA. ..... and my horses !   Just want to keep feeding them !!!  Our taxes are horrible here and we are retired.  Many Thanks to you ! You are wonderful !    God Bless, Nancy
Permalink Reply by Jim Litwinowicz on June 4, 2011 at 7:20pm
In many areas, you can get a lease that allows for Marcellus and Utica but exempts anything deeper than that. (There are deep strata that have potential and who knows what they may find in the future...helium?) Other companies insist on "center of the earth" rights. But I know of no company that will lease just for Marcellus or just Utica.  They will insist on the rights to both.  It all depends on the company and  who is in your area. Alos, try to get a lease that insists on at least one horizontal well or the lease cannot be "held by production"  by just shallow wells.
Permalink Reply by Oil and Gas nightmare on June 19, 2011 at 12:21am
dude I found one(gas company) and they are pretty freaking cool...so far so good.. they seem to be willing to ease your fears and make things very clear in the written leases... and honestly I have read so many leases that are the way you are talking about and it blows my mind...like I read one thats said  "GROSS" the about 5 freaking paragraphs later it said " less deducations that are reasonable to get it to market and any cost for enhancement"    WHAT?!!!!!  which is it brother?  it cant be both....its like HOW can that not be just flat out lying and then NULL and VOID...
Permalink Reply by daniel cohen on June 11, 2011 at 12:10pm

Dear All,

Very interesting. I'd be interested as well in the impact on the bottom line for landowners. Specifically. how accountants visualize the way the landowner can use deductions for mineral depletions.

Thanks,

Dan

Permalink Reply by Jim Litwinowicz on June 16, 2011 at 9:41am

here are some good maps of the Utica (PDF file) from the DNR of Ohio.

 

http://www.dnr.state.oh.us/Portals/10/Energy/Utica/Utica_SourceRock...

Janice Lanphere HancharickPermalink Reply by Janice Lanphere Hancharick on June 26, 2011 at 4:21pm

There are wellpads where Marcellus and Utica wells are being developed simultaneously, so listening to a company rep tell you only interest in one layer is being shown ... hogwash!  Rights owners don't need to be giving out

two-fers. The companies want all the cookies on the plate!  Signing a lease for more layers than that is foolishness.  Depth?  Drilling is done in the North Sea so I'm sure companies can reach our shale.

Oil and gas often come out of the same wellbore.  "Back in the day" oil was KING,  gas was considered a nuisance and flared off ... meaning burned.  It still is in many countries.  Russia is the largest contaminator in that regard.  If your area is like 4-County on PA/NY border, bringing up both resources is not uncommon and whatever market price is received by a company for both becomes a part of the royalty payment.  Sweating till the lease is up is a common happening nowadays.  Good luck on dumping that first one!

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