Comment

Comment by Douglas W on March 23, 2013 at 12:07am

@ Bob Jennes. Your statement about the Point Pleasant line is whats always been stated to me as well. The burning question may be where does it end or really thin out until it's not viable to drill. I have seen the PP defined by Halcon splitting Crawford County horizontally through Meadville and as high as the Erie county line by RRC. It seems as though the test wells will march Northward to truly define the boundary.

Comment by Bob Jenness on March 22, 2013 at 11:49pm

And back to the leasable acres thread,

It's interesting that the back of the envelope estimate of about 50K acres is in the same ball park as the acres committed to NWPALG and CX.  It's also interesting that the number is about a quarter of the HBP number quoted for RRC, or less if you add RRC, Halcon, and Shell.  Landowners (and energy companies, and environmentalists, and regulators) really need a good comprehensive study with unimpeachable math for this market.  Anybody here want to help define a little open-source project to do this?  Or do any of the LOGs have this in their library already?

Comment by Bob Jenness on March 22, 2013 at 11:41pm

Back to the Williams Thread,

Williams has a large gathering network supporting Atlas/Chevron, and, I think RRC.  I know they're doing a "routine survey" of that existing infrastructure.  This might be a hint at embryonic plans to build some of the huge amount of new infrastructure needed to carry the Utica gas and maybe even oil.  If you have ROW, make sure you get fair compensation for letting them do any expansion.  Remember that production volumes from frac'ed horizontal wells are maybe thousands of times bigger than from the old vertical wells, so even though those old wells are no longer producing much, the spare capacity is meaningless to carry the new flows.

Comment by Bob Jenness on March 22, 2013 at 11:35pm

sldouglass,

I thought I heard somewhere that the Point Pleasant line defined some practical limit to the producible geology, and so acres north of that line will lease later and for less, or maybe never.  Is anyone planning Utica test wells north of the line?  Have you heard of a process variant in development that makes good production practical? 

Comment by sldouglass on March 22, 2013 at 3:27pm

I am betting that all of Crawford County will be of importance to producers. After all, it is wet gas and oil - not a dry gas area from which the companies have backed off ----- for a while.

Comment by sldouglass on March 22, 2013 at 3:23pm

Douglas W references the Fox note that says 20 companies are trying to find a way to export natural gas as LNG. My bet is that they will succeed. And as the article mentions, the price of natural gas will go up - but I have heard it said that there will be a limit on the increases in price when the price begins to reach the cost of alternative fuels - say $6/mcf? somewhat higher than current prices but nothing like the old $16+/mcf of old. And the companies say they can bring the gas to the well head for less than $1/mcf.

Comment by Douglas W on March 22, 2013 at 10:20am

As to the Motley Fool article I posted. In the marketplace supply will find a way to meet demand and that is what has happened for now. These companies have anticipated the future and are prepared for it by the numerous sealed (for now) wells sitting in anticipation for the long awaited move that possibly started today in fact, to unleash exports on Europe and Asia.

I highly recommend this article......

http://www.foxbusiness.com/news/2013/03/22/key-us-senator-starts-wo...

Comment by sldouglass on March 22, 2013 at 9:46am

as to Joseph Ohio March 22
As to Motley Fool's discussion, I would suggest that more attention be paid to Items 2 and 3 than to Item 1. Not long ago gas prices hovered around $16.50 - before the shale explosion came along. Now the price of natural gas is low - convincingly so and Industry is beginning to take advantage of it with less concern that the price will suddenly go up to prior high levels. I suggest the so called overproduction is no accident. These companies know how to turn of the spigot to balance demand. What the are after is an expanding market for an almost limitless supply of gas. And with low prices the market is responding. Energy intensive operations are considering the move back to the US. Vehicle fleets are converting. Factories to convert ethane into plastic are yet to be built. The higher prices overseas promise a new market for our cheap gas. I respectfully suggest the current supposed overproduction is no accident and will ultimately expand the natural gas industry and make it more profitable.

Comment by john doe on March 22, 2013 at 6:06am

Thanks Berk for Halcons link,

Now using that information from pg 21(map) And IF??! Crawford  co.comes into play, I conclude there will be approximately 50,400  of the more valuable acres for first leasings.

How I came about this is kinda long winded (sorry) but if your still with me here we go!

Crawford co is 648000 acres that is cut in half because point pleasant splits the county north and south leaving 324000 acres.

Of that 324000 ,one third  is wet, still valuable BUT prices are declining.

The other third low gas to oil ratio now companies are looking at the remaining third 108000 acres, of that remaining lets cut it by 50% whether HBP,Citys,Antis(lol) or any other number of factors that will eliminate drilling areas so now that leaves us with 50400 for now, preferable leasing acres..

So if are one of the fortunate landowners within this arena,How much value will you put on your property????

DISCLAIMER: I have too much free time and I DONT know dirt from shine-olla. (I hope I didnt offend anyone)......

Comment by Douglas W on March 21, 2013 at 10:00pm

3 Lessons From the Natural Gas Revolution.

http://www.fool.com/investing/general/2013/03/20/what-have-we-learn...

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