Just was curious to hear of any activity going on in Venango county. Anything from talks of leasing, to actually signing on the line of a lease.
What have the offers been for potential leases? Any good addendums you were able to negotiate?
Has anyone heard how the completion went for the Seneca Resources well?
Hopefully 2012 will hold a lot more activity for this industry founding area.
It appears that most leasing activity is creeping into the southern part of the county from Butler county.
Shell has been active in Cranberry township. Did hear Seneca was very happy with the well on Slatertown rd. Didn't hear any flow rate.
Do not know if well has been flowed back or flare tested yet, but Seneca is leaseing in the Fertigs area. $ 2500 acre 18%. Also Range is intersted in a small part of the county. Don't know if the Utica is wet, but seems to be where the interest is.
Does anyone know what shell is now offering in lower Venango County? It was $3250 and 18% gross, but I saw a blog where someone suggested it was now $3500 an acre and the 18%? Is this interest due to the wet marcellus or do they think the utica may be wet here also?
Range contacted me about 2 months ago about leasing my property in Sandy Creek. I too quickly told them that it was already leased, so I did not get any information on what they are offering. I did talk to a range landman after that and he siad that they were looking at central to northern Venango County.
In northern Venango County Range Resources holds, or I assume they do, leases on much of the land that Cabot originally leased back in the early 80's. There were many shallow wells drilled, less than 5000', then by Cabot. Then those leases got flipped to Great Lakes and then to Range who also drill more wells. Many wells have stopped producing and have been sealed. So with the Marcellus and Utica coming into the area those older leases may or may not effective now since I'm sure there were no depth restrictions. I would think, from a legal standpoint, that new leases for the deeper deposits would be required or would be advisable. I saw some discussion having to do with that somewhere recently. What do you think will happen?
I think in Venango county Range's wells are drilled in the Medina formation, that would make the Marcellus above the present Range wells, but the Utica would be below the Medina. Shell is leaseing in central Venango county along with Seneca and Range.
I talked to the landman from Shell. He was still at $3250 and 18% and said that they were pretty concrete with those numbers. They would not do any negotiating to match another production companies offer unless they saw the others offer in writhing, rumor has no bargaining power with them.
I believe that we may see some activity from Chevron sometime in 2012 here in southern Venango, operating off of some leases signed a number of years ago with Atlas. Anyone that has signed up with DEP's eNOTICE tracked permits would see that Chevron is in the process of acquiring 4 well permits for a pad. Nickleville road from route 208 out to route 38 is flagged out for seismic testing soon as well, and extends on further to a few other roads.
Time will tell to see who the real contenders will be here in our county. I hope all will continue to post any information that they know is going on in the area. Appreciate the posts.
$3250/18% is what I got from Shell a month ago for 25 acres in Irwin Township. I went to their office in Butler two weeks ago and they showed me a stack of hundreds of leases on which they are doing the O&G title research. They have a considerable backlog and said they wouldn't be offering any new leases for small parcels until the spring time, simply because they have too many currently in the pipeline. They will still go after the bigger stuff (i.e. 100 acres and up).
George, could you tell me what the unit pool size was in your lease. I have property in Irwin Township and have bee talking to Shell about a lease, the unit size in their lease is 1280 acres which seems awfully large to me. Is the 1280 acres something new or have they been requiring this in all of their lease. Wondering if I have any negotiating power in this unit size. Thanks!
1280 it is. Yes, it's a bigger pie that makes my piece smaller, but a bigger pie also has the possibility to collect more gas, thus paying out more royalties. It was a trade-off I was willing to accept.