Comment

Comment by Bob Jenness on March 9, 2013 at 12:54am

Just to calibrate, DKD, there were some actual property sales in Crawford County last summer (one in Linesville and one in Conneaut Lake that I know of) that had O&G components.  Don't sell anything until you know those numbers.  They're several times bigger than the offers here:-)

I've also had friendly neighbors offer to relieve me of my burdensome acres.  A common story is "looking for a homestead for my kids/grandkids".  If you counter offer those with "land minus mineral rights" (since they're worthless, anyway:-) the answer usually is "no thanks", which indicates they know there's a new technology with promise and they hope you don't.  That worked well for RRC and Atlas.

The big wild card in this discussion, though, is the new news that we're all selling into what is essentially a MONOPOLY business where the sell prices are controlled by the holder of the monopoly.  How much was Carterphone worth before they invested millions (today would be billions) to break the AT&T monopoly.  Even after the break, the company was ruined and others benefitted from the break far more than they did.  

Only in a free market can you ever expect to get fair value for any commodity.  This is far more depressing than the small numbers from a first test well that was admittedly frac'ed imperfectly for the geology (or compromised to get data on even deeper formations, also HBP by the same post-horizontal vertical junk wells).

Comment by the two of us on March 8, 2013 at 5:50pm

David-- I will remember to get all my investment
Advice from you. If you say it's worthless then
I'm sure your correct.

Comment by David Hunt on March 8, 2013 at 4:46pm

The two of us and Gary I have seen guys like you at auctions paying more for something used than you would pay for the same thing new. remember this is worthless land and a lose, lose, situation. I was just trying to help a guy out of a bad investment:)

Comment by the two of us on March 8, 2013 at 4:26pm

Put me down for 700

Comment by gary smith on March 8, 2013 at 4:23pm

dkd. i'll give you 600.

Comment by David Hunt on March 8, 2013 at 3:47pm

Gary that is for the Halcon/Staab well

Comment by David Hunt on March 8, 2013 at 3:36pm

Gary I do have the permit but my scanner is not working so I can't post it but. On the permit it does say Target proposed for production, Point Pleasant. Deepest formation to be penetrated Trenton. I was told by a very reliable source that they will be taking core samples from this site.

 I agree with Berk 100%. If you have the gas and oil rights to your land you are one of the lucky ones. Those people that leased for $5.00 or $10.00 an acre back in the 90s only wish they held out like you did and if you sell out now for a small amount you may be one of those people in a year or two!

DKD if you think your land is worthless let me know and I may be interested in buying it at fair market value for worthless land. Say $500.00 per acre

Comment by gary smith on March 8, 2013 at 2:51pm

has anyonr seen the target strata of the atlantic pa (shell)  and the hajcon /staab wells? according to berks map posted earlier, the lippert went below the utica into the trenton /black river.

Comment by rex roae on March 8, 2013 at 11:48am

DKD, it's simple business.  If the figures on the Lippert well turn out to be an accurate reflection of the drilling in this area, it puts those of us with land in the area on the back burner.   We've already seen much more lucrative wells being drilled to the south of us and over west in Ohio. 

If it costs $6 - 8 Million for each of these Utica wells and a producer sees they'll only get a return of a little less than $2 million the first year, it's hard to see what those with rose colored glasses are seeing.  Seems that these deep shale wells can possibly lose up to 80% of their production after the first year so the the Lippert well looks like it could be a big money loser.

Now we also haven't heard anything about the wet gas in the Lippert well which could be the wild card.  I'm a little skeptical on it's prospects since they weren't mentioned in Range's quarterly report but we will see.

Bottom line, unless the cost to drill these deep wells fall precipitously or natural gas takes a big jump in price, it doesn't seem our area will have profitable Utica wells and even if they are, it looks like it could be some time before drillers really pay much attention to this area when there's much more profitable drilling prospects out there.

Comment by sldouglass on March 8, 2013 at 7:18am

There is an enormous amouut of material on the Internet starting with the pioneering efforts of George Mitchell in the Barnett Shale in Texas. http://geology.com/research/barnett-shale-father.shtml After years of effort, I think his payoff started to come in the 1990s. Check the lease deals for the Barnett - recognizing that the Barnett is not as good as what is being leased in this area. In addition to other things, local gas is closer to markets and a big difference is that the leases around here include not just one shale, but likely 2 or 3 or more shales and possibly the opportunity to resume "conventional" production in shallow sands.
Check the Penn State site and myriad others. Google words like Marcellus, Utica, Marcellus maps etc.

• ‹ Previous
• 1
• …
• 54
• 55
• 56
• 57
• 58
• …
• 151
• Next ›
• Page