It is ridiculous to me that the ODNR has not yet made any formal statement about 2012 well results, and instead allowed Bloomberg (liberal) media beat them to the punch about what a "disappointment" the Utica play is. This story has been picked up by national, and regional media all week, with not one response.
I can see the writing on the wall that the oil window is disappointing, but the way the ODNR has handled (or not) the dissemination and analysis of 2012 well results is inexcusable. They have the information necessary to highlight areas with potential, and sadly disappoint others. But they are the keepers of the information and should be the disseminators of the news.
Can't wait to see what the new map looks like.
That's my rant for the day.
Good rant. I have a particluar well that I follow and last week the production numbers were posted for 2012.
But then this week, those numbers were removed from that well. What's going on?
The bad news is in the "UTICA" for not having "OIL". The Utica is developing a new definition to mean "oil and gas recovery below the water table to the center of the earth", like Xerox became know as making a paper copy back in the 80's when there were other companies that made copiers. There are other formatins that these companies are holding onto and not selling under the Utica.
The problem with ODNR is they have no set time in which they have to release the 2012 numbers. I took that article with a grain of salt about the oil window. I do find it odd though that companies are not buying up oil window acreage that is for sale right now. Maybe they want too much money for the acreage who knows..
Nobody's buying because there's no value in overpaying for wells that produce marginal amounts of oil. It's that simple. There will be a sweet spot within the volatile oil window but the vast majority of land outside of that will be uneconomical. This is no different than every other shale play.
I believe well results will be disappointing because the midstream processing is just now coming on stream. Therefore, most of the wells have been shut in. To the best of my knowledge, the only 2012 midstream availability was a small temporary unit installed at Cadiz last August to service GPOR's Harrison County wells.
IMHO.....I'm anxious to hear others' opinion on this issue.
The whole oil play issue is a disappointment. In a nutshell, all agree oil is present. Apparently, since no nat gas is in this segment, there is insufficient well pressure and shale permeability to release oil from the shale and force it to the surface. Likely the oil well service companies (AKA Frackers) are working diligently to resolve this dilemma. Seems like there should be a large pot of gold at the end of the rainbow for the successful problem solver.
Listening to companies present like Carrizo at the IPAA yesterday (a company solely interested Utica oil), they're pretty darn confident there's plenty of "black gold in them thar hills" that's relatively accessible, but the easy plays are limited (they're active in southern Guernsey). At their presentation, Carrizo stressed because of their focus on oil, they are not held hostage to midstream capacity, as they just truck out whatever their wells produce.
I just listened to EVEP IPAA presentation and they said the rock pressure is good in the volatile oil window. They said they are working on getting the right completion techniques to get the oil out.
I have been monitoring Stark County recorder activity. Enervest continues to add new oil gas leases every week. The leases are mainly for eastern townships in Stark. They recently leased some of our property for 3000. They must believe this oil zone area will be profitable within the next 5 years.
bics,,any idea if they are leasing in Pike twn? Have a contact number for me? thanks