According to the Recorder's office, Chesapeake's primary term (5 years) recently expired on about 500 acres in the NE corner of Trumbull and they "extended the option to renew" the lease for an additional 5 years.
I do wonder about this as well
I wonder if those leases were some of the ones chk used for collateral on their loan. Could it be that they have to keep them in order to keep from defaulting on the loan?
That is a very good question.
That's a good point lynn. I hadn't considered that. Someone like Dexter could probably answer that accurately. I do hope that the reason is deeper. Rumor seems to be that the Gasfrac experiment on the Nettles well was successful, but solid info seems to be publicly nonexistent to date. If the technology worked, and is applicable to our area, maybe Chesapeake had two good reasons to renew leases. Thanks for posting your thoughts.
Can you tell me how to contact Chesapeake? Thanks
Hi Berthenia. This is their contact number from their web site.
GENERAL INQUIRIES 877-245-1427.
Maybe someone has a more specific number for you to call, and I hope that they post it for you if they do. Persistence and good luck to you.
Thanks, Sage59. I have been waiting a long time for something positive to happen regarding drilling in Trumbull County. I know lots of people have, also. Can you give me any indication as to the current situation is--are there no plans for drilling in the near future?
Trumbull county is out of the picture. Companies couldn't make money there when oil was over $100/bbl. So here's what happens next: assuming that oil prices rebound--which could be as early as 2H '16, as late as 2017-2018--companies with lease positions in the marginal areas will slowly map out plans to derisk said areas. This doesn't happen unless cash is cheap to borrow. By the time oil comes back the cost to borrow the nine figure sums needed to explore the tougher areas will be much higher. We need to go through a cycle here where these companies that issued junk bonds to fund their operations get flushed out. Halcon probably doesn't survive. BP has no interest in coming back to Ohio, so whatever is left of their lease position will probably expire before anyone drills it. Mountaineer Keystone--active in Portage county--has huge money backing them, but seem to be dormant. Lario tried to sell their Utica assets more than once and got no bites. Both times they tried to sell oil was significantly higher than it is today.
The bottom line is that Trumbull, Mahoning, Portage, and Stark are all dead zones until this cycle is over. The thing that made the shale revolution happen was a mixture of technological advances, high energy costs, and a low cost to borrow. Two of those three things will not be around over the next 3-5 years. I wouldn't plan on seeing any real activity for a long time.