As I was sitting in the local restaurant this morning , small city in Ohio, I overheard a couple guys who work in the industry. I won't mention who they work for but they were discussing the hurt that this industry is starting to go through. Alot of companies are doing away with jobs. Anyway from the sounds of it there's going to be an awful lot of vertical wells going in to hold properties. Never thought of that happening again since Oxford oil did it a few years ago. I can believe it will happen. Scary thought for alot of folks but maybe there's some good leases out now that will help prevent that. Let's hope
This is how my lease with Gulfport is worded:
"Lessor reserves all oil and gas and other mineral interests from the surface of the leased premises to the top of the Queenston Shale"
It does not limit vertical wells, but it does make them more costly.
Looking on the Brightside, shallow gas wells give you free gas.
Good info Philip. I'm not sure how aggressive companies will be with these vertical wells but I'm sure there will be some doing this. The company that was talking about it has a nasty reputation anyways.
I bet it starts with a C and they don't care what kind of rep. they have. They do what they want. If you don't like it "sue me".
It does not matter which company you lease with. They can sell your lease to another company. What matters is the wording of your lease, they can't change that.
Interesting, the one bad thing is our lease is worded with no free gas allowed. (Rice)
Along the same lines, what about plugged wells in coal bearing townships, do you think they would be practical to reopen, be faster and lower cost than drilling a new well? And be a sure thing since they are already there? We have one, and looking on the ODNR's website, there are several around us on other properties. I'm not sure if they were productive when they were plugged for coal mining, and if coal mining destroys them or not, but very curious if that could be one game plan for the companies?
My friend who does title work just got laid off Friday. She say's a lot of people are going to be affected in the industry if the prices stay at this price.
I wouldn't think so EWK, I'm sure once there plugged and abandoned it would be awful tough if not legally impossible to do this. I could be mistaken . The name of the company is who I have my lease with and they have been known to patrol this sight, like many other companies , so I can't really come out and say it but Bo may be close.
How are you ?
Looking back bud that was one of my mistakes in the leasing process I made, dam it Jim.... Ha ha
They talked me out of free gas for the horizontal, I get that, but I should have added free gas for any vertical producing wells. You pointed out another thing I missed. I sure missed some bone headed things, should have thought it through a bit more.
Were you in the little Amish restaurant ?
Yes I was at the Wooden Wheel Good luck with everything