Replies to This Discussion

Permalink Reply by David Allen Lilly on June 4, 2015 at 12:31pm

I would imagine they drilled all of them, but who knows. Evan would prolly know if you send him a message, he is in the loop better than I am.

Permalink Reply by evan on June 5, 2015 at 12:58am

They drilled 7 this time around so that makes a total of 8.

Permalink Reply by BRT on June 16, 2015 at 6:05am

Just heard some good news that Rex will be paying the delayed payment to pick up years 4 & 5 of our leases for those of us that have not been drilled.  They also mentioned the plan is to still get us drilled before the 5 year term ends, take it for what it is worth. 

Permalink Reply by Noble County Land Owner on July 20, 2015 at 3:56am

Guess you don't have much choice if the lease say they have an option to renew.

I don't think signing away some/all of your mineral rights is a good idea, in most situations.

From what I read about forced pooling:

After the oil/gas company make 100% to 200% profit, above their drilling costs,  determined by the Ohio Oil/Gas Commissioner,  you get 100% of your share minus your share of "expenses". Unless you desperately need cash now... I say don't sell or sell 30-40 percent...

I have a friend who bores the wells before and after fracking and tells me the wells are producing large quantities even while they are boring. He said "million $" a day.

So if it costs 10 million to setup/drill a well, after 20 days (at the above estimate) they've made their money back + the profit of 100%. 

After 20 days....

Permalink Reply by BIG on July 21, 2015 at 1:33am

NC Land Owner,

I think your calculations are inaccurate.  Most wells take 17-30 days to drill and then 15-30 days to Frac.  That's per well.  If a unit has 4 planned wells, you are looking at 4-6 months before the O&G companies can take the product to market.

Then you have to make sure there is pipeline ready for the transportation.  If not, you cannot get the product to market to sell.  It takes roughly 9-12 months from the time the bit hits the ground until a landowner receives their first royalty check.

Most companies have a break even point of 1 1/2 to 2 years for their units.  So, if you are unitized don't expect anything for awhile.  That is why the State of Ohio wants you to reach an agreement with O&G companies. 

Permalink Reply by Noble County Land Owner on July 21, 2015 at 3:54am

You didn't address the main question, that the wells are producing while they are drilling/fracking.

I get all the "what ifs"... but go positive and say all infrastructure is in place... What is the average daily production/profit from a "producing" well?

Very vague answer about the forced pooling. With horizontal drilling and fracking, it's almost certain they will "hit" something. 100% - % of costs is much, much better than 20% (or the fraction they give you for 80% of your rights). Can you give us figures on the difference?

Permalink Reply by David Allen Lilly on August 19, 2015 at 1:08am

I have been away from the site for a while, just wanted to catch up for a minute.

A very nice man came here wanting to sign a temporary water line agreement for Chesapeake to supply water to the McClain for fracking. Initially we were very hesitant, and a little suspicious, because we have the house and property up for sale.

When I don't understand things I automatically become suspicious. They want to pipe water from 265 all the way to the well which makes no sense what so ever because we have two very large pits on our property that they could have used.

Additionally I was under the impression that fracking was to commence in August, which didn't seem like a great month to suck water from a small creek in large quantities.

The guy was very nice and added a number of addendums to the agreement to protect any future owner, I didn't want to hamstring the next guy or have an agreement that scared off a potential buyer.

I am now told that fracking on the McClain is to commence in December. That works for us because the traffic has fallen off considerably and I didn't really want the fracking traffic while we have the house on the market.

I don't really want to see production yet either because the oil price is so depressed. I am also told that Chesapeake has no pipeline agreements for the McClain and may build their own. I wonder if this information is what you all are hearing ?

Anyhoo, not a great time to be in the oil and gas business although the price at the pump was nice for a little while.

Hold on to yer mineral rights, the price will eventually go back up. Deer season inching closer, see you all then.

Permalink Reply by David Allen Lilly on August 24, 2015 at 4:49am

 I noticed in this past Fridays Jeffersonian two property transfers from Eclipse Resources I LP to E2 Ohio Compression LLC. 29.631 acres in Millwood township and 14.356  in Oxford township. $338,000 and 234,000 respectively.

Anybody know what this is ?

It looks like someone is pushing a lot of dirt around on the hill behind Jacob Mullets' house on 513. There is already some sort of compressor station there.

Just curious.

Permalink Reply by Jan on August 24, 2015 at 5:50am

I believe it is the Hayes and Borton Gathering Facilities.

Permalink Reply by David Allen Lilly on August 28, 2015 at 1:52am

Any specifics, is it the Hayes farm on Rosehill ? They should be on the Grape Hollow facility one would think.

Do you have the locations of the properties, what roads they are on ?

Permalink Reply by Jan on August 31, 2015 at 2:31am

The Hayes Gathering Facility is on Grape Hollow Rd.  The Borton Gathering Facility is on Lydick Rd.

Permalink Reply by RJLP on August 25, 2015 at 1:10am

Wondering if anybody can help me. Is there a web site where can see who you are leased to. We are thinking our lease might have gotten sold. We are in Millwood Township - Guernsey County.

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