Replies to This Discussion

Permalink Reply by MJ on October 23, 2014 at 9:40am

Wonder why they would do that? The area is a "bust" and it has "lousy wells". All the big guys are pulling out....etc.
Hmmm

Permalink Reply by Robert Bond on December 8, 2014 at 7:25am

I do wonder about this as well

Permalink Reply by lynn on December 20, 2014 at 9:42am

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?

Permalink Reply by Joseph-Ohio on October 9, 2015 at 10:45pm

I think you're 'spot on' / really on to something there lynn.

Can't develop or sell it unless you have the rights via lease or purchase.

Permalink Reply by Robert Bond on December 20, 2014 at 11:16am

That is a very good question.

Permalink Reply by Sage59 on December 21, 2014 at 2:42am

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.

Permalink Reply by Joseph-Ohio on October 9, 2015 at 6:33am

I think we have a winner here.

Permalink Reply by Joseph-Ohio on October 9, 2015 at 6:34am

Can't develop it or sell it if you don't have the lease to develop or sell.

Permalink Reply by Berthenia Fuentes on July 24, 2015 at 4:38am

Can you tell me how to contact Chesapeake?  Thanks

Permalink Reply by Sage59 on July 24, 2015 at 7:34am

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.

Permalink Reply by Berthenia Fuentes on July 24, 2015 at 10:25am

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?

Permalink Reply by Dexter Green on July 24, 2015 at 2:33pm

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.  

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