Replies to This Discussion

Permalink Reply by Todd on May 25, 2013 at 9:08am

The price of gas should continue to rise with recent approval of LNG exports to premium international markets.

http://oilprice.com/Energy/Natural-Gas/LNG-Exports-Obama-Sides-with...

Permalink Reply by craig on May 25, 2013 at 2:47pm

It will take a few years before LNG exports become a factor in my opinion.

Permalink Reply by Todd on May 26, 2013 at 4:45am

Yes, it will take a few years for the price to increase.  My point is that the price WILL increase.

Permalink Reply by craig on May 25, 2013 at 2:46pm

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.

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Permalink Reply by Todd on May 26, 2013 at 4:52am

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.

Permalink Reply by Todd on May 26, 2013 at 5:26am

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. 

Permalink Reply by Jason on May 25, 2013 at 2:47pm

I'd really like to know what volumes the wells in northern beaver county are bringing. I get the dep updates and every week lately there's more wells bring approved.

Permalink Reply by Todd on September 13, 2013 at 4:26pm

Energy Department Authorizes Dominion’s Proposed Cove Point Facility to Export Liquefied Natural Gas

September 11, 2013 - 1:11pm

http://www.doe.gov/articles/energy-department-authorizes-dominion-s...

https://www.dom.com/business/gas-transmission/cove-point/liquefacti...

"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!

Permalink Reply by Todd on November 14, 2013 at 4:24pm

Check out Range's Utica presentation from today:
http://phx.corporate-ir.net/phoenix.zhtml?c=101196&p=irol-prese...

Permalink Reply by Nancy LeNau on November 14, 2013 at 4:37pm

Todd, Just can't get this to come up on my computer.  All the others I can get ?  Thank you and God Bless, Nancy

Permalink Reply by Todd on November 14, 2013 at 5:27pm

Hi Nancy,
That's strange... Just go to www.rangeresources.com and click on the investors link and then presentations to find the new Utica presentation.

God Bless,

Todd

Permalink Reply by Todd on November 16, 2013 at 3:56pm

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.

Attachments:

• Utica Point Pleasant Play 11-14-13.pdf, 4.8 MB

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