Replies to This Discussion

Permalink Reply by Todd on May 25, 2013 at 9:04am

http://www.eclipseresources.com/wp-content/uploads/2012/11/January-...

See Pg. 14 from the good folks at Eclipse.  There appears to be copious volumes of dry gas in 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.

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

Comments please!

Permalink Reply by Jason on May 25, 2013 at 3:00pm

How many acres per unit for the $40,000,000 estimate? Trying to figure out Mount per acre.

Permalink Reply by Todd on May 26, 2013 at 4:42am

The standardized horizontal dry gas well is 6000' in length.  A deep formation unit below the Onondaga limestone in WV can not exceed 640 acres = 1 square mile.

 

Permalink Reply by Todd on August 23, 2013 at 1:51pm

Range's August 2013 presentation Pg. 50 shows Hancock County in the middle of the dry Utica well trend being drilled by CHK in SE Jefferson County, Ohio and NW Beaver County,PA 

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTE2ODMw...

Permalink Reply by Tim Tarr on August 24, 2013 at 6:27am

Thanks Todd,

    I seem to be falling behind following these reports. I really like those those Marcellus numbers.

per acre :

Super Rich- 17.42 Mboe (1.08 Mbbls condensate, 8.96 Mbbls NGL's and 45.3 Mmcf) 

Wet- 127.6 Mmcfe (0.279 Mbbls condensate, 9.862 Mbbls NGL's and 66.21Mmcfe)

Dry- 106.28Mmcfe

Now do that Downspacing to 500 feet between laterals using that 80% 

Super Rich- 27.87 Mboe (1.72 Mbbls condensate, 14.33 Mbbls NGL's and

72.48 Mmcf) 

Wet- 204.16Mmcfe (0.447 Mbbls condensate, 15.77 Mbbls NGL's and 105.93 Mmcfe)

Dry- 170.04 Mmcfe

 $100 oil ($85 condensate), $3.50 gas and $20 NGL  works out to 

                                 Super Rich- $ 686,480

                                 Wet- $724,150

                                 Dry-$595,140

So if you have the worst lease possible (12.5% and 50% deductions) in dry gas area

works out to $ 37,000 an acre for eventual payout. No additional formations (Rhinestreet, Utica and perhaps more). 

Guess I should sell those Rights  !!!!

Permalink Reply by Todd on August 24, 2013 at 8:30am

Good math Tim,

Ok, I'll buy your mineral rights:

$4000 per acre $CASH MONEY$ NOW! :~)

Permalink Reply by Tim Tarr on August 24, 2013 at 10:56am

Hey, that's the best offer yet. ; )

Permalink Reply by Todd on September 4, 2013 at 6:45am

The Future of Natural Gas in 2 Slides

http://www.fool.com/investing/general/2013/09/01/the-future-of-natu...

Permalink Reply by Todd on September 13, 2013 at 4:21pm

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."

Permalink Reply by Todd on July 15, 2015 at 2:06pm

More info about the Utica than I can handle! :-)
http://nrcce.wvu.edu/wp-content/uploads/FINAL_UTICA_REPORT_07012015...