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Comment by Greg Hamilton on February 6, 2013 at 7:28am

great explanation, Peter!

Comment by Peter Schueler on February 6, 2013 at 1:45am

Charlotte, I’m no expert on wet gas but here’s a simple way to think of it. Wet gas, also known as rich gas, is a cocktail consisting of methane (CH4) which is the dry gas fraction generally called “natural gas”, ethane C2H6, propane C3H8, butane C4H10, pentane C5H12 and higher forms of hydrocarbons generally tagged C5+. You can find a good description of each of these gases at Wikipedia. Methane, ethane, propane and butane come out of the well as a gaseous mixture. The higher C5+ components coming from the well generally are in a liquid form called condensate or drip gas along with whatever crude oil may be in the mix.

 Wet gas generally has a btu energy content about 1250 to 1450 btu’s per cubic foot (cf), considerably higher than dry gas (methane) at about 1000btu per cf. Distribution pipelines will not accept gas richer than 1100 btu’s per cf. Therefore, rich gas needs to be processed to remove the propane, butane and pentane to get the btu content of the remaining gas below 1100 btu per cf and recover these components that have a higher market value than pipeline gas. Ethane can also be removed but that step is not always economic when ethane prices drop below certain levels. For instance ethane was selling for about $38/bbl in October 2011 but only $11/bbl in December 2012 (price at Mont Belvieu, TX). This explains why some new Utica well gas production rates are quoted with or without ethane recovery. Today’s market does not offer economic recovery of ethane.   

Here’s some websites that have more info

  http://www.eia.gov/conference/ngl_virtual/EIA-NGL_workshop-Anne-Kel...

 http://gomarcellusshale.com/forum/topics/what-exactly-does-1440-btu...

http://www.naturalgas.org/naturalgas/processing_ng.asp

Comment by Josh on February 5, 2013 at 3:48am

 

Margaret

I was told CHK is running a line from the compressor station on gilmore ridge over to the buell well that is what they are working on now.

Comment by Dan on February 5, 2013 at 1:37am

There's some pipeline work going on along SR 9, near Hanover Ridge Road.  It appears to be at least a 12" line.  Does anyone know what this is for?  Here's a map showing the part I can see being worked on now.

Comment by margaret gandee on February 4, 2013 at 3:57pm

Anybody know of anything going on in Norht East corner of Harrison County?

Comment by Shower Bath on February 4, 2013 at 3:05pm

Here's an interesting article relating to Gulfport and Chesapeake. See the link.....

http://seekingalpha.com/article/1152971-gulfport-energy-with-fantis...

Randy

Comment by Nate on February 3, 2013 at 1:29pm

I think what they mean, Josh, Is they would pay 8k or whatever per acre for land that would have a lease on it with a 20% royalty. Not 20% of your minerals. Less % royalty acreage will be prorated down.

Comment by Poison Ivy on February 3, 2013 at 12:24pm

Good question, Josh. Thanks for sharing. I'm curious as to what other people have offered, if anything.

Comment by Josh on February 3, 2013 at 9:33am

I was just trying to get a value of what our mineral rights are worth.  If they are willing to pay $8000 an acre for my remaining 20% then what is entire value per acre?  So they essentially will pay 40k  an acre for 100% of your mineral rights andIi am sure they are planning on making a little bit of profit?  It was not bounty its was a company affliated with CHK and since the contract is expired I can devulge this info.  I would want to know if my neighbor was offered 8k and I was considering 3k.  I thought that might be some important information to offer.  I also wondered what other have been offered. 

Comment by Al Cramblett on February 2, 2013 at 7:23am

Josh, while I respect your right to confidentiality, this is meant to be an informative webpage. I'm going to speculate that the company is Bounty Minerals. Here's what another individual posted on another string which relates the strategy that is probably being used:  

"You might get 6K for unleased minerals, but nothing near that if the minerals are HBP or you have signed a lease and are trying to double up. Generally speaking, its difficult to get companies to close a deal at 3K, and usually they come back after running title and/or mapping and will try to knock you down even further - usually for no good reason other than you've been tied up and are getting frustrated."

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