Comment

Comment by JREwing on November 6, 2013 at 12:40pm

Tyler Durden, you da man! and right on the money and one of the reasons for me suggesting the management of this outfit is a cluster f**k on numerous occasions. lol

Comment by Tyler Durden on November 6, 2013 at 12:24pm

Its not permitting delays for their initial planned pipelines.  The Allam to NFG Pipeline project was approved on 03/04/2013, and you can see that the DEP has done several inspections.  They wouldn't have been able to clear the ROW and install temporary stream road crossings until they obtained it.  

http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleSite.aspx?S...

 

They also permitted a place to have a facility near Henderson Station:

http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleSite.aspx?S...

 

The rumor I heard was Halcon never had a written agreement with NFG on the amount of gas that they would take.  Then after Halcon cleared the pipeline ROW, NFG informed Halcon that they would only be able to take a lower amount of gas from them.  This amount was too low for Halcon to develop Venango County sites.  Now, Halcon is scrambling and trying to figure out a new pipeline route for the Allam / Rainbow and other sites that direction. 

 

If you look on the DEP website, Halcon has several permitted pipelines in Mercer County that lead over to the Philips pad on 358 and west into Ohio:

http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleClient.aspx...

 

 

Comment by JREwing on November 6, 2013 at 12:00pm

Jim is definitely a glass half full kind of guy. :). I need people like him to balance my negativity sometimes...

Comment by james on November 6, 2013 at 10:35am

I agree Jim, I personally know several of the landowners that were leased just a few months ago by Halcon and I can't say who, but I have recently been in talks to a landman from another company that's interested in leasing our property which is just a couple miles from the Allam well. This area has slowed, but far from dead.

Comment by Jim Litwinowicz on November 6, 2013 at 10:29am

He said no development "for several quarters." That could be less than a year.  Doesn't sound like several years or more.  But a lot depends on both pipeline improvements and the nat gas market/price. And of course, the Shell cracker plant.

It could be that the wetlands and other issues are causing delays in permitting.  Maybe lines will go in as soon as permits are issued.  That would be a year or so. Perhaps Shell will assume all the Halcon W Pa acreage. Or some other company with the deep pockets to put in the infrastructure needed.

Tough business to understand and/or predict.

Comment by JREwing on November 6, 2013 at 8:35am

Thanks Jim.  I actually like your interpretation of the report and conference call, but he didn't specifically reference any county names EXCEPT the counties(areas)that they would be concentrating their efforts in which were southern Trumbell and northern Mahoning.  The whole point being, that they are ceasing well drilling and pipeline building in Crawford, Mercer, Venango in lieu of southern Trumbell and northern Mahoning.  I completely understand why, but that does not make it any easier to swallow.  lol  I of course was aware of the additional leases put on and the additional wells planned for Allam and even others, but the whole point is that those plans appear to have been put on hold for the forseeable future, wouldn't you agree?  Yes, they could still return and resume activity at a later date(maybe a couple of years?), but I'm not holding my breath.  Based on Floyd's comments, including his obvious disdain for the terrain, wetlands and culture in NW PA, I don't think they'll be in any rush to return. 

Comment by Jim Litwinowicz on November 6, 2013 at 8:15am

JR; but Halcon just leased a couple thousand more acres in Venango Co. Thats 10-15 Mil that they spent just a couple of months ago to expand their footprint in Venango.  Doubt they would do that if they were pulling out.

His crappy wells comment was more about northern Trumbelll Co in Ohio,  a long way from Venango.

The delays in Venango and Mercer are due to pipeline issues. And Halcon is having cash flow issues so they cannot drill wells and sit on them until pipelines are in place.  They will drill where they can get quick access to the markets until they improve their cash flow issues.

.

Comment by Trapper on November 6, 2013 at 8:11am

Looking at this same topic being discussed in the General Discussions , I thought the reference was to the Utica in nothern Trumbull County , OH......? Is Halcon targeting the Utica in Venango? I would think the Marcellus and Upper "D" would prove wetter than your Utica.

Comment by JREwing on November 6, 2013 at 6:33am

Um, we're chittering and chattering about Halcon leaving Venango and Mercer and Crawford because their CEO, Floyd Wilson announced it to the world yesterday...  No speculations or theories.  And if you're naive enough to think for one minute they won't leave prepared pads and rows sit and rot, you'd be dead wrong.  It is done all the time. 

Comment by Farmer Friend on November 6, 2013 at 6:11am

I'm just a landowner, already leased to Halcon. . .got paid and everything  You folks chittering and chattering about Halcon moving out of Venango Co. must not have learned of the large lease signing Halcon did this past summer with the group I belong to.  Or that they apparently are planning two more wells very close to Allam.  With all the money they have sunk into our group leasing alone, and the gas lines they are working on right here, I wouldn't think it very prudent for them to just up and pull out now, would you?  Gas companies are sneaky little buggers, no one knows what they are doing, where they are doing it and with whom, but you silly boys are certainly entertaining to read, all your "speculations" and "theories"!  Have a good day!

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