Status of well on 660 and mudge road

Does anyone know the status of the gas well positioned on 660 and mudge road, between the Rice residence and the old Mudge place?  They have removed all of the equipment pretty well, and it looks to be done? As I don't know much about the process I wondered if anyone had any knowledge as to what is happening with the well.

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Replies to This Discussion

Permalink Reply by Ann Ticopa on September 12, 2012 at 11:18pm

By the end of 2008, ERI was low on cash; they were defaulting on bonus payments for  new leases.   And even if they'd had the money, it was unlikely they'd get all the (2005-2006?) leases held.  So, in that situation, top leasing for not much up front does seem a good strategy.  According to the KKR website, their June 2009 $330M buy-in enabled ERI to drill 75 horizontal wells.

Thanks for the explanation of the circumstances.   I knew generally what top leases were, but not that the initial payment was (only) about 10%.   So, now, it "makes sense".

 

Permalink Reply by paleface on September 13, 2012 at 7:19am

 I think I'm starting to understand this East Resources couldn't pay there lease bonus's so they top leased there own lease's for 10%,but what is the surrender for ?

Permalink Reply by Ann Ticopa on September 13, 2012 at 1:49pm

Practically, surrenders reduce confusion about which lease (if any) is in force for a property.  
Take the ERI top leases as an example.  The records show (1) an original 5-year non-renewable lease recorded in 2006 and (2) a top lease recorded in 2009.  If there was no recorded surrender of the top lease, anyone searching the records down the road wouldn't know which of the two leases might still be in force. 

Permalink Reply by paleface on September 13, 2012 at 5:20pm

 Ann,I would guess that East left a real mess for Shell to try and clean up.

Permalink Reply by E. Preston Rice on September 21, 2012 at 8:45am

This mess is making less sense to me the more time goes on. Talked to Dad yesterday, and he says there is a fracking unit set up on the Fish well site now. Where are they fracking at this point? Previously drilled wells? I thought that they had already fracked the Fish wells

Permalink Reply by E. Preston Rice on September 21, 2012 at 11:13am

Where do I find a map, or posting of exactly what wells are on the Fish pad?

Permalink Reply by Doug Pierson on September 21, 2012 at 11:47am

The efacts area of the DEP site will pretty much tell you everything you need to know.  This page will give you all the sites by municipality

http://www.ahs2.dep.state.pa.us/eFACTSWeb/criteria_sitesbymuni.aspx

Click on Tioga County and select Richmond Township and click on Search.  The Fish stuff begins on page 10 of the little table that appears. I just looked at it.  The 1V and 7H wells were permitted together, along with 4H, 5H, and6H. The emap will tell you about the same thing but it's not very user friendly. You'll see the link to that over on the left site of the page above.

 As I said before, we're getting money from the 4, 5, and 6 wells now, but they can re-frack a well if they find it necessary. But, there could be any number of reasons that there is a bunch of equipment at the pad. I've been following this discussion, and yes, your situation is very frustrating. But, just based on the direction that your Dad's property is from the Fish wells, I doubt that you guys will ever be part of that unit. The laterals all go away from you.

But, if it will help, attached are all of the well drilling maps for Fish 301.

Attachments:
Permalink Reply by E. Preston Rice on November 15, 2012 at 12:02pm

considering the distance from the Fish unit to the one over by Arnold Avery, and the surrounding wells, it seems that there is a large tract of unleased land in and around the Rice Homestead LLC. From what I can see, it may not be this year, but probably within 5 when the price goes up.

Permalink Reply by E. Preston Rice on June 11, 2013 at 1:52pm

I spoke with a gentleman the other day in a small restaurant, he was involved with Shell as a sub contractor/tucking.  His take on the recent surrender of so many leases in Tioga was that the well head tax came due, and that this created a problem with drilling companies who have come to the conclusion that PA is not a good investment under present policy. Interesting discussion, he also believed that we would see a return in PA in another 5 years or so when the political clime improved and price of Nat Gas has gone up. 

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