Comment

Comment by Frank on February 8, 2013 at 8:45am

Sam Orr this was in yesterday's news

 

http://www.post-gazette.com/stories/local/marcellusshale/allegheny-...

Comment by Samuel J. Orr on February 8, 2013 at 7:31am

To sidouglass: Can you post where you learned about Allegheny County International Airport lease offer of $5400 / acres bonus? I am not doubting you but would like to reference the source article. Thanks in advance for your help on this.

Comment by DeanG on February 8, 2013 at 6:28am

So, you are saying the "little groups" that opportunists are putting together have 100 years to make a good deal? lol I think the gas companies are keeping as much under their hats as possible which leads to all ths speculation. There aren't many areas like the airport that have thousands of acres to lease at once and I just don't think they are going to give a lot of details to the public on price of products. There is too much money involved. What they put in the paper is what they want us to read.

Comment by sldouglass on February 8, 2013 at 5:51am

OK - It is fun to try to figure out what is going on with a few local test wells.
Perhaps more interesting is the fact that Allegheny Co Inter Airport says it has just leased its 9263 acres for $5400/acre bonus! That conveniently lets the County Executive announce total bonus of about 1/2 billion dollars [$500,000,000]. And I don't remember seeing much about test wells. The newspaper said that the lessee was hoping for wet gas, but no mention of oil which is said to underlying the west side of Crawford Co. Having 9263 acres to lease probably helped the County in negotiations - more than the little groups that opportunists are putting together in Crawford Co. The paper did not have much detail on the 18% royalty. There was nothing to indicate whether or not it would be applied to the prices of the several products [ethane, propane etc.] or the supposed price of the mixture of gases as they come out together at the well head. Apparently the term was limited to 20 years. There must be something more to be heard on that. At any rate $5000/acres appears to be a reasonable bonus.
And keep in mind that a horizontal well may drain only 40 acres [some say 100 acres]. That is a lot of wells to drill. At least 90 on that airport land. Know that they need to keep drilling in regular sequence over time just to maintain production. There is a steep production decline curve. About half of the total production of these wells pops out during the first couple of years.
As Production drops, drill another well somewhere - for the next 100 years or so. There is lots of time to make the right deal.

Comment by sldouglass on February 8, 2013 at 5:49am

OK - It is fun to try to figure out what is going on with a few local test wells.
Perhaps more interesting is the fact that Allegheny Co Inter Airport says it has just leased its 9263 acres for $5400/acre bonus! That conveniently lets the County Executive announce total bonus of about 1/2 billion dollars [$500,000,000]. And I don't remember seeing much about test wells. The newspaper said that the lessee was hoping for wet gas, but no mention of oil which is said to underlying the west side of Crawford Co. Having 9263 acres to lease probably helped the County in negotiations - more than the little groups that opportunists are putting together in Crawford Co. The paper did not have much detail on the 18% royalty. There was nothing to indicate whether or not it would be applied to the prices of the several products [ethane, propane etc.] or the supposed price of the mixture of gases as they come out together at the well head. Apparently the term was limited to 20 years. There must be something more to be heard on that. At any rate $5000/acres appears to be a reasonable bonus.
And keep in mind that a horizontal well may drain only 40 acres [some say 100 acres]. That is a lot of wells to drill. At least 90 on that airport land. Know that they need to keep drilling in regular sequence over time just to maintain production. There is a steep production decline curve. About half of the total production of these wells pops out during the first couple of years.
As Production drops, drill another well somewhere - for the next 100 years or so. There is lots of time to make the right deal.

Comment by Ronald L Wilcox on February 7, 2013 at 3:38pm

Darlene Schwab,I for one would not be concerned about the northern boundary for the Pt.Pleasant formation.If you look at RR map they show the boundary at the Crawford/Erie county line.I'm no "Expert"but you can see the real experts can't agree.

Comment by David Hunt on February 7, 2013 at 3:37pm

Brad would that be on the Bortnick property AKA the old Frericks farm?

Comment by Brad woodard on February 7, 2013 at 2:44pm

Hello all first a big thanks to everyone who post here. I have learned a lot.

As far as being confusing I agree. Best we can do is educate ourselves for when the time comes and never be afraid to say no. I as told 18 months ago that I was a tad bit stupid for not taking the 15 dollar an acre 10 year lease she had. Last fall I turned down 375 an acre. It will happen when it's ready to happen.

There has been some talk about Linesville and I can give a little info there. I have heard there is a pad being built there soon north of route 6 off of beaver center rd.

Thanks again all for the great information.

Comment by DeanG on February 7, 2013 at 11:43am

Thanks. I am trying to follow what goes on but it really does get confusing, and there are so many different people with opinions. Some people are saying that your property needs to be in that "sweet spot". I have also heard that Halcon and Range have stopped leasing including Oil Creek and nearby townships. Thanks for responding. Gary, I wanted to send you a message. I sent a friend request.

Comment by PennCrude/NatGas Go! on February 7, 2013 at 10:51am

Gary,

That's very true. It will just be a matter of time when the drilling companies along with the natural gas producers start to set up drilling for the Utica/Marcellus in and around Hydetown, Pa. Few things that will keep a majority of these new wells from comming online. That would be replacement of the smaller diameter and older pipelines that couldn't necessarily be able to hold up to high pressure and volume production flow. We're more or less going to see a lot of pipeline workers and equipment doing the lines before we start seeing the drilling rigs setting up. Down south they basically had a blank canvas to work with, very little obstructions in way of laying pipeline down. I'm certainly looking forward to it. This area needs that work and jobs above and below ground. Be nice of course if there were town hall meetings set up in Titusville, Pa. to get everyone on the same page and informed on future plans.

• ‹ Previous
• 1
• …
• 69
• 70
• 71
• 72
• 73
• …
• 151
• Next ›
• Page