Beaver Co. Renewal

Some time ago, I read where people wanted to know if leases were being renewed in northern Beaver County. Our original lease was to run out 6/15/15. As of 5/7/15 it has been renewed for 5 more years @ original terms.

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Replies to This Discussion

Permalink Reply by Todd on July 13, 2015 at 7:44am
Hey Nancy and Craig,

Thank you both for your kind words. I was fortunate to learn a lot of information recently and can tell you that our Marcellus and Burket are both wet and are good and that our Point Pleasant is great.
Further, the Marcellus is very brittle in SW Beaver County/Hancock. Even though our Marcellus is thinner, it is condensed, brittle organic rich shale. It is worth testing and I believe it is worthy of a core expansion. Hence, according to Gary's information on the Markwest-Marathon merger, Markwest has already expanded to constructing 2 fractionation facilities in Bavington.
Also, according to Greg Wrightstone and Range, the pressure gradient in our area has been upgraded.
All Great News!
Permalink Reply by Gregory L Cardosi on September 4, 2015 at 11:33am

Well it looks like our lease, and I'm assuming everyone in our "block/grid" won't be renewed by CHK!

Lease expires on 9/10. What a bummer. That's the way it goes sometimes.

Permalink Reply by craig on September 4, 2015 at 1:04pm

From my perspective of being drilled and receiving very little in royalties, I'd say you might want to be somewhat happy. Selling gas now is making very little money for the companies and royalty owners. 

I honestly feel this area is going to boom, it is just going to take awhile. You will not be leased for awhile, but they will be back, even if it is couple of years from now. What the signing bonus will be, who knows. 

I say count your blessings... unless your personal situation merits getting re-leased sooner than later.

Permalink Reply by Todd on September 4, 2015 at 2:39pm
Gregory,

What township are you located in? There are other producers out there too.

Thanks, Todd
Permalink Reply by craig on September 4, 2015 at 3:19pm

It appears to be Big Beaver, according to the county website.

Permalink Reply by Todd on September 4, 2015 at 3:52pm
Gregory,

Congrats on getting rid of Chesapeake!

If you are in fact in Big Beaver TWP, I would would recommend calling Rex Energy, Hilcorp and Penn Energy to see if they're interested. Maybe try Halcon too.
Permalink Reply by Trapper on September 5, 2015 at 4:13am
Our Boro (New Beaver) here in Lawrence County borders Big Beaver.
Rex is the biggy out this way. However,my neighbor has been told by Rex not to expect to be re-signed in Oct.2015. Meanwhile 3 miles away from here they continue poking holes at the Patterson pad.
Go figure......?
Permalink Reply by Gregory L Cardosi on September 5, 2015 at 5:12am

We are in fact in Big Beaver Borough. When this all started 5 years ago,our area wasn't what you would call a "hotbed" of activity as were other areas. As the expiration date grew closer and still nothing, I thought this might happen.

We are not the main players in our grid, Bruce Reed is. So I don't think we will be calling any other companies. Probably just wait and see if they approach us in the near future.

Thanks for the replies and all have a nice Labor Day!

Permalink Reply by mark ondrusek on September 5, 2015 at 6:49am

chk is letting leases expire all over the county.  probably does not help, but trust me you are not alone!

Permalink Reply by B. Jones on September 5, 2015 at 9:36am

What part of Beaver County.  I am in Brighton Township, and ours was not renewed as of the 1st of September.  Very disappointing to say the least.  Which Companay are you leasing with?  We were with Cheasapeake.

Permalink Reply by Gregory L Cardosi on September 5, 2015 at 10:34am

B Jones, are you directing those questions to me? If so, Big Beaver is about 5 minutes north of Chippewa,and maybe 15 minutes east of the Ohio line. We had our lease with Chesapeake.

Permalink Reply by Todd on September 5, 2015 at 11:01am
If CHK does not believe any competition will lease you up, they'll save their money until they have to in this low commodity price environment. Range is letting some leases expire in Washington County also.

However, maybe you guys could ask CHK if they intend to lease in the future or not in your area. Also, leasing budgets usually open up in the springtime. Just FYI.

My guess is that Chesapeake is negotiating a sale in the area.

Good Luck to everyone -- I hope it works out.

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