WESTMORELAND CO. PA. DERRY TWP.

THERE IS A COMPANY HERE BUYING UP LEASES AND DRILLING HORIZONAL WELLS AND COMPLETING THEM AT ABOUT ONE A MONTH. THIS COMPANY IS [REX ENERGY] OUT OF STATE COLLEGE AREA. THEY JUST SIGNED A JOINT VENTURE WITH WILLIAMS DRILLING OUT OF TEXAS WHO WILL BE DRILLING STARTING 2010. THEY ARE A VERY AGRESSIVE CO. THEY HAVE 3 OR 4 HORIZONALS ALREADY TIED INTO MAIN LINES AND PRODUCING GAS. SEVERAL OF MY NEIGBORS HAVE STARTED TO RECIEVE ROYALTIES. I DO NOT SEE TO MANY POSTS ON THIS SITE COCERNING WESTMORELAND CO. DERRY TWP AREA LOTS OF GAS WELL ACTIVITY.
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Permalink Reply by Nathan Adler on August 31, 2011 at 8:58am

Need a good landman for Mt Pleasant Twp Westmoreland County.  Any recommendations?

 

Permalink Reply by Carol on August 31, 2011 at 11:43am
Frank,
I hope you are still on this site. If not, maybe someone else can answer these questions.
How long did it take until you starting receiving royalties? How much time from when the wells were flared or put on line until the first check arrived in the mail? And, did you receive a division order before receiving a check?

Thanks

Carol
Permalink Reply by frank on August 31, 2011 at 1:06pm

i recieved my first royalty check on 3/26/2010, there was several months after completion of the drilling,the price of natural gas is at a very low price at this time, and i think the demand for gas is low do to the economy ,and out of the home heating cycle. the drilling companies may not have a buyer for all the gas they've on reserve and,may close some valves till a larger demand for gas. or the price of natural gas rises. i think there is a glut of gas on the market now keeping the price low.my  royalty checks are determined by the price williams recieves for the gas at that paticular month. you can find the price of natural gas in the tribune review onthe bussines page. lots of luck 

Permalink Reply by Brian on August 31, 2011 at 2:01pm

Hello Frank,

 

Good to hear that you are still around.  My drilling unit is being drilled as we speak on the Skacel well pad off of Bergman Rd.  If you don't mind me asking, could you give a percentage to the amount your royalties have dropped since that first check?  Maybe from March of 2010 to March of 2011 and from March of 2010 to present. 

 

If you would rather message me privately that is fine as well.  I'm just trying to get an idea of what the decline rates are in our area, and you have been receiving royalties the longest I believe. 

Permalink Reply by Carol on August 31, 2011 at 2:19pm
Brian and Frank,
I've talked to some people in the Panizzi unit and the Eaglehouse unit (maybe those aren't the right names of the units, but people in that general area.) They have told me the decline was significant even in the first year but they would not be more specific. One of the Eaglehouse wells declined quite a bit rather quick according to DEP reports. I hope that doesn't happen to mine.
I don't understand exactly how the royalty amounts are determined - can the DEP production reports be used at all to estimate royalties? I hope my first check arrives soon so I can figure this out.
Permalink Reply by frank on August 31, 2011 at 3:03pm
BRIAN & CAROL, i am in the panizzi unit, 3 wells total, no 2 wells have the same production, in fact one well out produces the other two, the check stub includes the production of each well seperatly. it would take me some time, but i could, make a graf of each well ,to see if there is any fall off in a year and a half, but i couldn't factor in when they shut down for maintance line repair etc. Carol, the big drop off of royalties is  do to the price the drillers are selling the gas at. my first couple of checks they were recieveing 6.50 to 7.50 per unit of gas,but my last couple of checks the drillers were receving 3.50 t0 4.50 per unit. royalties are based on the amount of gas sold times price at the time of the sale. my checks are half of what they were, in the onset mainly from the drop in gas prices.   BRIAN is the rig you are refering to, located between eric ekers and skacells or the one closer to mcbrooms?. is the company drilling WILLIAMS PRODUCTION?
Permalink Reply by Brian on August 31, 2011 at 3:26pm

Frank,

 

Yes it is Williams Production.  It is the rig that is between Eckers and Skacels. They moved the rig from the McBroom site over to the Skacel farm a week or so ago.  It is about 450 yds outside my back door.  They are drilling the Skacel North and Skacel South units. 

 

How often have they shut down due to maintenance?  Do you consistently get checks every month or are there lapses?  Thanks for you help Frank.  It is much appreciated. 

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