Comment

Comment by Bob Jenness on January 9, 2013 at 8:07am

Berk, Regarding the Ohio blog...

This brings up a whole new aspect of long term responsibilities.  I hope Sam Douglass is watching and will join in.  I knew I had to have a clause in my lease detailing responsibility and some "indemnification?" for me on this, but if I want to protect against the company going out of business, then what?  I suspect that most E&Ps cannot be counted on to both stay in business for the duration of long-term production and be as robust as, for example, BP and its partners have been on the Deepwater Horizon matter.  Is there a bond clause, perhaps at the landowner group level that would protect this?  Note that this is another case where it's potentially a relatively small business impact to the E&P, who can either fold and take their past gains off the table, or spread a settlement over a large number of producing sites going forward to pay for one bad one.  For the landowner, it's likely catastrophic and he's out of business and broke.  Viewed this way, it looks like a job for an insurance company.  Anybody out there want to actuarialize this one?

Comment by Berk on January 9, 2013 at 5:58am

A real good reason to have a good Oil/Gas lawyer do a lease review before signing:

 http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/could-...

Comment by Berk on January 9, 2013 at 4:38am

From Halcon's December investor's briefing: Read the last couple sentences. I copied and pasted the below right from their document. 

   

Acreage: It is very difficult to take several swathes of differing land rights and apply valuations thereto that, in aggregate, can be taken to the bank. That reality must be kept in mind when reviewing these approximations.

• Williston, 136k acres @ $7.5k = ~$1bn
• Woodbine/Eagle Ford, 200k acres @ $7.5k = ~$1.5bn
• Utica/Point Pleasant , 130k acres @ $7.5k = ~$1bn

The Williston acreage spans a number of sweet spots including 'the prolific Fort Bertold area'. Additionally, Halcón's Williams County acreage is just north of where Continental (CLR) announced Monday, December 3, its game-changing Three Forks 3rd bench well, Charlotte 3-22H, with some likely positive consequences for Halcón. Overall, $7.5k/acre should be low-side for the Williston acreage. As for Woodbine/Eagle Ford, $7.5k/acre is low compared to prices paid in the recent past. In the Utica, the current price for non-core acreage is about $5k/acre and core segments like Point Pleasant can be valued at $15k/acre in line with recent monetization transactions by Chesapeake (CHK). Against these parameters, the $7.5k/acre should be conservative for Utica/Point Pleasant.

Comment by j. rick on January 8, 2013 at 11:06am

anyone signed with cx energy going to the members only mtg. tonite in meadville?

Comment by gary smith on January 8, 2013 at 9:26am

big hawbaker excavator just went through conneaut lake ,west.

Comment by Bob Jenness on January 7, 2013 at 8:58am

Anybody got eyes on the Cochranton/Pettis well?  Flaring?

Comment by David Hunt on January 6, 2013 at 2:52pm

Jim Actually they started the pad near Espyville last week. I drove by it on Thursday and they were moving dirt. Also the big 24" or 30" inch hole was drilled at the Stabb site 2 or 3 weeks ago. I was told it is 30" and goes down about 100'. Drove by the Byler site today and they were in the process of setting up the rig.

Comment by Samuel J. Orr on January 6, 2013 at 2:19pm

Thanks to all of you for bringing the dead cat back to life.  I really appreciate it when people post information to keep us all up to date. Now if somebody can resurrect the dead cat on the Venango County site, I will be even happier. My own property is in western Venango County in French Creek township. Some good news on that site would also be appreciated. Don't get to hung up on county lines. I follow the Mercer, Crawford, and Venango County equally and have posted at various times to each site.

Comment by jim hall on January 6, 2013 at 11:24am

Berk, The entrance to this well will be off Wilson Shute Rd way back towards Dutch Hill Rd

Comment by Berk on January 6, 2013 at 7:53am

Jim,

This the first I've heard of the Union twp well. Where is it being drilled at?

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