Hancock County is located in the Utica Shale Sweet Spot for Gas per the USGS
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.
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.
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
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)
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
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
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 !!!!
Good math Tim,
Ok, I'll buy your mineral rights:
$4000 per acre $CASH MONEY$ NOW! :~)
Hey, that's the best offer yet. ; )
The Future of Natural Gas in 2 Slides
"The project would produce an estimated $9.8 billion in royalty payments to mineral owners over 25 years."