Gas Greetings, My nucleus is NE PA Marcellus focused however we find Crawford and nearby interesting and collect some views on the area. You all have an “Up” on us back east, you have seen O&G prod for a century.
We don’t know facts but get the very strong impression that the Marcellus is of little interest your, far shallower, thinner and less rich vs. SW and NE PA, economics are just not there. Targets are the Utica for oil and gas, in the updraft from the SW to N NE swing trend coming out of NE OH. And we hear of significant interest in the upper Devonian, Rheinstreet and others. A google will surface Rheinstreet info and maps. My look found a swath coming south with some width in C E Crawford, at least that was IDed as thicker? I think it was.
Upper dev is shallower and less expensive to drill and until now has not been fraced, which is the exciting variable we are all watching. Industry tells us that the key to fraced upper is not IP rates but the indicativeness in the decline curve. Frac any shale and of course gas flows forth but is it a 30 d or 180 day blip or something with 2-3 Bcf lifetime.
Leasing, trying to follow you all, only have 2 other contacts there, lesson from the east is sure, many won big by waiting but note those were in what turned out to be very desired areas, though some came in super high, some is medium and some has no gas. There are some who didn’t lease in NEPA and now, unless they have a parcel under a planned bore, have little bargaining power. There are bids in Bradford the heart of the NE play for 0 bonus and 15%R, near no addenda. Though most can do better, but not much at this point. There is no forced pooling above the Onondaga which lies under the Marcellus.
Is the other rule, 3800ft? anything under the Onondaga but above 3800 ft is no forced pooling either.
No one lieks to hear this but the extreme abundance of the M + other developing gas plays equals a far lower price horizon for gas looking out many yrs, vast changes to demand will come but only in time. NGL and oil are of course now top targets, let us hope they don’t get over produced as well. Mentioned because a legitimate dry gas prospect of just 2 yrs ago, with good but not top potential is now probably out of the game and for a long time, drilling $s will only go to the best, best, most economic rock.
Net, we don’t have much to add here but plan to participate and dig and share what we pick up for
Far NW PA.
james, the o/g companies don't like what they see on the world economic and military stage. any more than the rest of us. they also see the majority of americans voting put the dangerous oafs in power. there are no jobs or companies being created here. the o/g companies see no where to sell their wares.
world economic and military stage are just fine..
US GDP is slow growing but at 16.6 TRILLION.
It needs energy daily.
SHALE energies are reducing the need for crude imports, gas is reeplacing coal gradually.
World exploration and development budgets are record for 2013.
Jobs are growing in PA OH and many euorpean operations arre movign here now for cheap energy.
The ONLy reason leasng is diwn is 2-4$ gas vs 5-6+.
And the Marcellus at 9+ BCF / day is having a hard time finding a place to go.
It will happen and as prices rise, Crawford et al will be developed.
What is the point of your post?
Thanks, but my post was directed to Melissa , the OP.
I agree, Ed. I thought Chip summed it up early on... "huh ?"....
I think the original post may be the result of mixing bad grammar, no spell check and beer, lots and lots of beer.
You hit the nail on the head. Patience everyone, in do time it will happen.
No market for their wares, US gas use has run to all time highs. Big demand growth is years off. The econmy is going 16.5 trillioy, vs 699 billion in 1960. HUGE, just growth is slow.
2-4$ quells drilling leasing especialluy in lesser areas.
The most proific areas are seeing ;limited leasing.
In the words of Chip Decker; I quote "Huh"?