Where is Jack Young when you need him?

The two wells at the Cruttenden pad have begun shipping gas, I think.  Jack had information on the first day or two of production at the Seneca well up near Straight Run.  I've been expecting a post, pessimistic or not, about these new wells.  Will this post poke the dragon?

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Permalink Reply by Brian Day on May 10, 2015 at 7:09am

Pity, must be the hobbits got him too.

Permalink Reply by paleface on May 10, 2015 at 7:17am

Brian,the silence is deafening LOL. I did hear the wells are very strong.I just hope they can find a buyer for the gas.

Permalink Reply by Brian Day on May 10, 2015 at 11:34am

This website is beginning to resemble Detroit.

Permalink Reply by Jack Young on May 10, 2015 at 1:56pm

If you can get information out of Shell on these wells, I would be happy to hear it. But with monthly production reporting now in place there's less of a premium on "inside" information - we'll all know in a couple months. The key will be gas prices, of course - given how much Shell is supposedly paying for these test wells we'll need higher prices to convince them to do any serious developmental drilling. We have enough gas to make the area viable at a reasonable gas price. When that will come is anybody's guess, however.

Permalink Reply by Nancy LeNau on May 10, 2015 at 4:07pm

Thanks, Jack !  

Permalink Reply by Frank Walker on May 11, 2015 at 1:02am

Jack respectfully . . because what you wrote is clearly sensible and correct.

However:

My best knowledge is no penalty is provided or enforced for data incorrectly reported by the gas companies.  While I personally believe most gas companies will report timely and honestly, this is not guaranteed AFAIK.  I personally would take reported data seriously, but not necessarily to the bank.

Permalink Reply by Brian Day on May 11, 2015 at 1:09am

Hello Jack!  Good to see you are still above ground! Sounds like Seneca is willing to share information that Shell is not.

Permalink Reply by Jack Young on May 11, 2015 at 2:14am

Wish I'd been below ground yesterday - it would have been much cooler. ;)

Seneca likes to release favorable information quickly - they are a small enough company that their Marcellus and Utica results impact the stock price materially. Shell is so big, however, that they see little benefit in discussing or promoting their results from individual fields, let alone wells!

And my experience with reported production data has been very positive. We get royalties on many leases at all depths, and I've never seen any material differences between what our royalty statements say and what gets reported to the state. There are occasional typos, however, and some private companies might occasionally fiddle with their numbers, but I wouldn't question Shell's reported data lightly.

Looking forward to March production data later this week!  

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