See Pg. 14 from the good folks at Eclipse. There appears to be copious volumes of dry gas in western to central Beaver County, PA and all of Hancock County, WV on the order of IP's of about 10 MMCF/day and EUR's of about 10 bcf per well which translates to $40,000,000 per well at today's $4/mmcf pricing.
The price of gas should continue to rise with recent approval of LNG exports to premium international markets.
It will take a few years before LNG exports become a factor in my opinion.
Yes, it will take a few years for the price to increase. My point is that the price WILL increase.
Add to that the fact that the Beaver County wells that they can report on were the first ones drilled by CHK. It is common knowledge that the more they drill a play the more they learn and apply to the next well. This also bodes well for us. Then add on the Marcellus and other plays underneath us and here we go! From what I've read our general area is maybe the only area in the US where multiple plays can be drilled from the same sites.
It is going to take time though for the dollars to trickle down to the landowners. First the infrastructure, then the ability to sell/use all the gas. I also believe that when CHK said this play could last a lifetime they weren't joking... I can see them drilling a couple of wells on each pad, then in the future keep coming back and drilling more wells, or plugging one play and using the vertical to hit another.... for decades. I don't think they will be drilling and producing from 8 or more wells on one well pad simultaneously, but who knows.
I'm in it for the long haul. Not gonna be a get rich quick thing for me having already been HBP'ed with no infrastructure.
That being said, the IP's within the BTU strata for NW to north central Beaver County and south central Jefferson County, OH (includes Hancock County, WV within same BTU strata) are high enough that one or two producing laterals will create a nice royalty income even with a steep decline curve.
An experienced O&G attorney from southern WV told me that there are enough formations with hydrocarbon in place underneath us to produce for at least the next 100 years.
"The project would produce an estimated $9.8 billion in royalty payments to mineral owners over 25 years."
Our gas is headed to Japan and India!
Todd, Just can't get this to come up on my computer. All the others I can get ? Thank you and God Bless, Nancy
Here you go Nancy. Please see the below attachment! According to the RRC presentation of GIP including all 3 shales, your property has at least 200 Bcf of gas per square mile under it. 1 Bcf = 1 million mcf. 1 million mcf dry gas at the wellhead is getting about $3 per mcf currently in NE Pa.
So, the current value of GIP of one square mile in dollars for Hookstown is 200 million mcf times $3 = $600 million.
That being said, the gas doesn't pay anything until it is produced. In addition, this valuation assumes all dry gas at about 1035 BTU. Your BTU content is likely to be higher and you have wet gas in your Upper Devonian and Marcellus Shales which adds a higher value as well.