WHAT IS UP WITH THE UTICA WELLS BEING PLANNED AND DRILLED IN VENANGO COUNTY? IS THE PLAY OIL?

A lot of activity going on here. Is the play going to be oil? Anyone with any insight? 

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Permalink Reply by John Stanton III on November 19, 2012 at 6:21am

Estimation for marcellus royalty potential in venango is $20K per acre in Venango per life of the well at 1/8th royalty.  Drill baby drill.

Permalink Reply by Samuel J. Orr on November 19, 2012 at 9:02am

I am not sure about this. The Marcellus is not thick enough where my property is located in western Venango County to be commercially of importance. The Utica is sufficiently thick however to at least be interesting. I believe government,s estimation of Marcellus natural gas reserves exceeds the Utica by at least a factor of 4 to 8. The per acre figures are even more disproportionate because the Marcellus Shale  extends over a much smaller land area. Much information gets confusing because the term "Marcellus" seems to sometimes mean The Marcellus Shale only, or both the Utica and Marcellus Shale formations together, and sometimes just the Utica Shale. Perhaps a geologist or  two who pays attention to my observation can clarify things  bit more??

Permalink Reply by p umpjack on November 19, 2012 at 11:55am

Sam

you are starting to scare me ('I believe governments estimation")

review the map

halcon also has property amassed adjacent to range propertys

utica twp is not that far away sam......

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Permalink Reply by George Brown on November 22, 2012 at 1:46am

Hey p umpjack,

That's a very useful map.  Do you have a similar one for Butler county, PA?

Thanks.

Permalink Reply by Oliver Perry on November 22, 2012 at 3:30am

George,

Shell is just beginning work on the Halterlein well in northwestern Butler County. If I remember correctly, your land is in southwestern Venango County. You are probably fairly close to the Halterlein site, good results there could be good for your situation.

Permalink Reply by Area Man on November 20, 2012 at 3:14am

I don't really understand the question - can you repose and I'll try to help out?

 

One thing I would add, I think the limits of the Utica play are poorly understood.  Thus, any "estimates" are guesses at this point and will likely be revisited in the coming years.

Permalink Reply by owner on November 19, 2012 at 4:34am

I agree Fang, I think there is more interest in the central protion of the county.   But even with that said, halcon has backed out of leases in the central part of the county.  They have even backed out of leases with properties that are in close proximity to their projected wells.  If they really felt that strongly about the area, I would think they would buying up leases in the areas that they like.   Maybe they are waiting until the new year for adittional funding. 

Permalink Reply by Jim Litwinowicz on November 19, 2012 at 5:14am

owner; financial cash flow is a good possibility.  They signed these leases in spring/early summer.  Late summer/fall they announced two deals, one in Trumble Co and the Carrizzo deal.  Its possible they saw an opportunity for land they considered in a better area and went after it. Then they had to back out of these leases since they spent the money elsewhere.  At least thats my theory.

Permalink Reply by John Stanton III on November 19, 2012 at 6:30am

Discussion is about a week old, almost 3,000 hits, 3rd most popular, something is up. 

Permalink Reply by Bob Rock on November 19, 2012 at 2:57pm

Lets see building the Brugler pad in orangeville,oh.,Drilling the Philips well on 358 on stateline rd., Building the yoder pad in transfer,pa.  And building the Gallagher pad in jamestown all being started within last 6 weeks. I would think that would be a little outlay of cash, and thats just in mercer county and western trumbull county. also talk of another pad in trumbull for them, havent heard where or who yet,just rumor for now.  They do have permits for two more well sites in mercer county,pa. the Miklos site and the Cude site.

Permalink Reply by Jim Litwinowicz on November 20, 2012 at 2:30am

Bob Rock; Are all of those Halcon sites? Halcon is having cash flow issues, I think.  If they had the cash and were as confident as some seem to think, they would be leasing land now before proving it and driving up the price.They will drill some wells and prove the Utica as wet.  As soon as they do, they can get financial backing to lease more property.  Perhaps do a secondary stock offering. If they wait until after they have good results, landowners will ask for more and other companies will move in.

Permalink Reply by Bob Rock on November 20, 2012 at 7:01am

Yes Jim those are all halcon sites i mentioned in the above. The other two sites in mercer county  being worked on right now are hilcop and shell pads. Time will tell.

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