Replies to This Discussion

Permalink Reply by Robin Hood on June 6, 2013 at 8:30am

This is what I found on Google:

This listing is for Utica Gas Services, Llc's Single Location inOklahoma City, OK. The company primarily operates in the Oil and Gas Extraction Companies industry. 

• Utica Gas Services, Llc was founded in 2011, and is Privately held.

• Utica Gas Services, Llc had $290,000 in 2011 revenue (Estimated data).

• Utica Gas Services, Llc employs 0-10 (Show Value) people (Estimated data).

• Of the 0-10 (Show Value) total Utica Gas Services, Llc employees, 0-10 (Show Value) (Estimated data) are located here at the Single Location.

Wonder if Chesapeake has any connection to this company, They are from Oklahoma.

Permalink Reply by joe on June 6, 2013 at 9:02am

Looks like it was $1,047,000 for almost 177 acres. Works out to almost $6000/acre. More than the ground is worth, but I have seen ground go for $3000 to $4000/acre. And they probably didn't have much choice but to buy from the Thompsons as this is where they are already running pipelines to, so a good bargaining chip for Thompsons.

I saw on a few well plats from the area that they were drilling vertically deeper than the formation they were going to produce from and then plugging back. Wonder if they saw something in the cuttings that we don't know about, and they will come back and drill for when the infrastructure is in place to process? Remember, these guys know this will take decades to get to full scale production, and the wells they are drilling now are mainly to see what is actually there and to Hold By Production.

 

And Robin yes Utica Gas Services is an arm of CHK. All of the paperwork we saw when CHK was trying to bring a pipeline right-of-way through us in Beaver County was from UGS, but they ultimately didn't go through us. Search the Beaver County Recorder of Deeds; many rights-of-way for UGS, and all from CHK well pads.

Attachments:

• Utica-Thompson Deed.pdf, 407 KB

Permalink Reply by craig on June 6, 2013 at 10:27am

Joe, Originally CHK was looking to buy a small piece of this property for the facility they are going to need soon. In fact they made inquiries to at least one neighbor over a year ago as well. I believe a ROW on the thompson land to some other property in the area stopped them from buying just a piece of the Thompson land, they had to buy it all.

You are right that the Thompsons had some bargaining chips, including the hookup to the 30" Dominion line that runs right through the property.

USG is not affiliated directly with CHK. Here's the deal:

Utica Gas Services (UGS) provides gathering, compression and dehydration services for four gas gathering systems in a primarily dry gas window. UGS’ 393,000 dedicated acres contain just over five miles of in-service pipeline with an average throughput of 7 MmCf/d. This asset is 100% owned and operated by Access Midstream.

http://www.accessmidstream.com/About-Us/Strategic-Assets/Pages/Utic...

And then I find that Access Midstream is the company formerly known as Chesapeake Midstream Partners. It is a separate entity, but surely they have the same goal as CHK and rightfully so since they will be servicing their wells. I'd suspect their relationship is more than just business though : )