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Comment by sldouglass on January 17, 2014 at 10:38am

Go to:   http://investor.markwest.com/phoenix.zhtml?c=135034&p=irol-news...

Click Presentations

Now Click on “Wells Fargo 2013 Energy Symposium” and pp15 & 21 and read all

NORTHWEST PA JUST IS NOT FIRST IN LINE.

There appear to be limits on when and where capital will be spent.  It looks like things are moving from south - gradually as market justifies.  Crawford County and environs will have its day.  It is a question of when in the next hundred years that this part of the vast field will be seriously operated.

Note that this is just info on MarkWest [joint venture with Kinder Morgan] -- lots of other midstream companies.  Maybe some other outfit is bringing infrastructure north.

Comment by Samuel J. Orr on January 16, 2014 at 12:13pm

RJS. Thanks! I am sorry the results were not better. Lippert was touted to be a monster well at the beginning. It's not SW Pennsylvania but I still believe that the geology in eastern Crawford County is better than the Lippert well would indicate. There is a lot of action in Mercer County and some of the new action seems to be moving toward the east and thus getting closer to Venango County. Both Crawford and Venango have been essentially dead. I can't believe that geology suddenly changes at any particular county line. /the last time I looked Mercer County had over 60 new permits in 2013 for horizontal wells. Venango County had none. Your posts have been helpful. Let us hope thinks will start looking up for Venango and Crawford Counties in 2014 and 2015.

Comment by RJS on January 16, 2014 at 11:38am

To answer Sam's questions - I am posting the monthly numbers from my royalty check.  I don't have them in the form you requested.  The gas sales probably could be divided by 30 to get something like an average, but they are only selling oil every four months or so, therefore I think the average is even worse than your calculation for the oil production. The unit is 160 acres and most of our 11 acres are in it, but because of a PA law, much of the royalties go to our neighbor who has about 50 acres of the original 60 acre lease under which the land was leased.  It is all HBP at 12.5%.  The bottom line is we get about $25-$50 most months except when they unload the (I presume) accumulated oil and it becomes about $75 - hence the somewhat sarcastic remark about what I can afford to do with the income from that month.  I hope that helps even though I can't give you everything.  I have the next month results and haven't gotten to post them (not at home at the moment), but I will try to do that soon.

Comment by Bob Jenness on January 15, 2014 at 7:54am

Regarding Range GIP, etc.

A few years ago, it seemed that there was some consensus that all or part of Crawford lies too close to the edge of the Utica.  That would appear to be confirmed by the RRC GIP maps.  There was also consensus that what's under Crawford is a lot of energy, as confirmed by the results from Lippert.  The RRC stacked play analysis is the telling new news for me.  If you're going to optimize the return on your drilling resources, you want to put it where the STACKED geology is biggest, thus the (unpleasant for us) focus on SW PA.  

Thus, unless and until we find a more entrepreneurial energy company, or all the better wells run dry, we'll be the county with the slightly thin geology, even though we're nicely stacked.

For anyone who could afford it, the money to be made in oil and gas in Crawford was (and may still be) in RRC (up 47% since the formation of NWPALG), LNG (up >100%), D (+31%), XOM (+22%), etc.  Also, since all potential O&G revenues will be dollar-denominated, some diversity or hedging might have been in order, and Bitcoin would have been (and might still be) a good choice - up a mere 10,000% or so since way back then.  Or maybe we all really couldn't afford not to:-)

Or, we could try to persuade NWPALG, NWREC, or some other entity to be the entrepreneurial, white knight, local-focused driller we need...

Comment by Samuel J. Orr on January 14, 2014 at 12:36pm

To RJS: Please clarify your post about the September production numbers for the Lippert Well. I am confused. It would be nice to know the average DAILY production of Oil and the average DAILY production of Natural Gas for the well. I got the impression that your numbers were the amounts of oil and of natural gas produced for the entire month. Then you talked about eating steak. Were you being sarcastic. 162 barrels of oil would be about 3.4 barrels of oil per day, and 4171 mcf of gas would be only about 140 mcf / day. If this is what you meant, 3.4 barrels of oil at $100 / barrel would yield $340 / day. And 140 mcf of gas at $4.00 / mcf would yield $560 dollars per day. Total value of O&G produced would be $900 / day and this would make the well a disaster. Please clarify your numbers. Finally, if the well is a dud, the question remains why is it a dud? Is it poor geology or something else? There was a rumor that the well might have lost pressure as the result of an old unplugged conventional well in the vicinity, but I have no information to substantiate that. 

Comment by john doe on January 14, 2014 at 11:17am

I dont know any of the other details like how many acres or percent being paid for the Lippert well.

but by my math Range may break even in 10 years.

 thats really bad

Comment by Andy Grafton on January 14, 2014 at 11:11am

If my math is correct, at the production amounts that RJS gives for the Lippert well in September equates to about 84.325 BOE/d.  The top producing oil well in the Utica (SE OH) is producing at a rate of almost 600 bbl per day as well as roughly 7 mmcf per day, which is equivalent to around 1800 BOE/d... 

Comment by j. rick on January 14, 2014 at 10:40am

      chip or sam can you elaborate on these numbers from the lippert well? isn't 167 .8 barrels of oil a good thing, im confused.          Comment by RJS on December 6, 2013 at 9:45pm           

Lippert Well numbers for September - 167.8 barrels of oil at $83.909 and 4171.77 MCF gas at $3.667.  Steak dinner this month instead of pizza and wings.

Comment by Samuel J. Orr on January 14, 2014 at 7:30am

The name of the well near Cochranton was I believe the Lippert Well. I distinctly recall that there was some discussion that there were complications with the drilling and that this caused the well to be much poorer than anticipated.

Comment by Samuel J. Orr on January 14, 2014 at 7:14am

Chip: My land is in western Venango County about 3 miles north of the Allam well. The big well near Cochranton is about seven miles to the north of my property. The Allam well was reported as wet gas. It has been my general understanding that as one went westward in the Utica, the gas was wet and that eventually there was oil in addition to wet gas. (For the moment, the name of the well near Cochranton escapes me.) My understanding is that for the Utica, the wet gas area is found somewhat to the EAST of my property. I recall some GMS discussions about this in the remote past but I am not sure how or where to find them. If you have better information, please post it. It might be that a new thread discussing the geology of Venango/Mercer/ Crawford Counties would be helpful. Maybe someone has taken the pains to compile the results of various so-called delineation wells which if analyzed might give an overall picture of the geology.

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