Comment

Comment by sldouglass on January 21, 2013 at 6:27am

Situations vary and things change BUT not so long ago it was reoported that the average Range well was less than 3500 feet long and it was drilling 500 feet apart to efficiently draw the gas. 

Let's see:  500 feet wide times 3500 feet long equals ____ square feet divided by 43560 equals the number of acres.

 I am curious to know how many 1280 acre tracts are fully drilled with 8 wells and where they are located.  Any idea of the production figures for those 1280 fully drilled acres?

Marcellusorg.com estimates that based on the basis of currently available info there arer 109 years of permitting to be done in Pennsylvania marcellus shale.  And that does not count the Utica or other little shale deposits that might be productive.  that is fantasic positive news, but it suggests that drilling will not proceed as fast as some would say.

Comment by sldouglass on January 21, 2013 at 5:28am

You can bet that the producer will figure out a way to get what the separate oil and liquids are worth.  That is the reason they have left dry gas areas to drill in areas that promise wet gas.

Comment by Bob Jenness on January 21, 2013 at 1:13am

I suppose we even have to ask whether the RRC lease pays royalties on all NG and liquids, or gas only?  I once heard that oil and maybe some heavier liquids can be separated at the wellhead, then trucked to market.  Never was able to confirm it completely, though.  This would provide some cash flow even before pipeline infrastructure to carry mmcf gas flows gets built.  It would also provide some capability to observe the rate at which the liquids tank gets emptied.  I know that location is relatively near a Dominion transport pipeline, too.  Does anybody know if RRC has plans to connect to it, or do they have to wait for new bigger pipes?  It is also true that we may have to wait a long time for production on this well, if ever.  If it's a test well, we can possibly draw a line on a map connecting known RRC horiz wells (e.g. greenwood twp), and get an idea how they think the field may run.  I know a driller did this in Lawrence Cty - 4 wells in a straight line.  Don't know if any of them are in production yet.

All this "slow down" talk is pertinent.  It shows how important the bonus payments are.  Some of us are old enough that bonus is all we'll ever get to enjoy while our grandchildren wait for royalties.

Comment by Berk on January 20, 2013 at 4:48pm

Jim, That's fine as long as your not the official scorer of the game... LOL  

Comment by RJS on January 20, 2013 at 4:46pm

Ooops, I goofed - actually bought the property in 1989 and moved onto it permanently in 1997.  Doesn't really matter - just getting the facts straight.

Comment by Jim Litwinowicz on January 20, 2013 at 4:40pm

Berk; yer right....I shouldn't be doing math while watching football playoffs....

Comment by RJS on January 20, 2013 at 4:30pm

Thanks for the well wishes and the guesstimations and information.  We aren't planning to quit our day jobs, but obviously are following things with interest.

Comment by Berk on January 20, 2013 at 4:28pm

Not pick on you Jim but 55.433 x 30 days =1662.99

Comment by Berk on January 20, 2013 at 4:25pm

Appears to me you made a very good deal in 1997 before this horizontal drilling was even known. I hope this thing is a gusher for you and the rest of Crawford county's future economy.   

Comment by Jim Litwinowicz on January 20, 2013 at 4:25pm

RJS you will get 11/248 times 12.5% times well production. If the well produces $10,000/day after deductions you will get $55.443 per day or about $610/month  If the well produces more, which is likely, you will get more. Keep in mind that wells deplete rapidly so even if you start out getting $10,000/month don't quit your day job.

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