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.
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:
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
Well, someone is working on a pipeline.......today on my way home there were signs (but no equipment or holes in the ground) that said "pipe line construction" "be prepared to stop". This was on Rt 965 between Henderson Station Rd and Hells Kitchen Rd.
Debbie: Very interesting observation. Perhaps JR Ewing or other who live near the pipeline construction can get a little more information about who is building what , and from where to where, and for what purpose!
Things have certainly been slow Sam, perhaps only as dead as a dead cat! Here is what I have observed since Nov: First, on Rt 173 just north of I-80 (Mercer County) there has been some pipeline work. Not much, not huge, but some digging and a small piece of pipes & valves appeared above ground. I don't know if that is replacement of existing infrastructure or something new. Second, seeing more trucks in the Allam area recently but not on a daily basis. Third, our lease with a company that has a "sharing" agreement with Halcon will be expiring mid Feb. An indication of how much they or anyone else is interested in the area will be how fast they come knocking after that date. Our experience has been when one company doesn't want to renew a lease, the next company has been knocking on the door the next day. I'll keep you posted!
National Fuel Gas will add 7,500 hp of compression at the Tenn. Gas interconnect station at Mercer to be in service Nov. 2014. This will give N.F.G. the capacityto transport 105,000 DTH/D across Mercer,Venango, and Clarion co.
Yes. N.F.G. has also completed projects in the Lamont area Elk co. that can move gas from Clarion, Elk, and Jefferson co.and transport gas to the Leidy hub. Also has completed a project in Halbrook Washington co. with an internconnect to the Texas Eastern Pipeline.
This site is deader than a dead cat! For a little bit of good news see Mercer County Comment Wall. Hilcorp has two new permits in Sandy Lake Township. I am happy to see some activity that is getting closer to Venango county and to my own property in French Creek Township. (The permits are the preliminary ones that are required before a driller can get the Drill and Operate Well permits.)
Not unexpected and not totally bad news JR. Everyone knew all along that the issue was getting the gas out of the area. Now obviously they have found enough to like that companies are pursuing the pipelines and infrastructure needed. Pipeline away from Allam has to happen first....looks like that is a go. Pipeline from Rainbow to Allam on hold....expected. Also, from careful looking, it seems as if the Rainbow well was never completely done. (Makes sense, why spend the money if no way to move it out and you already know you are interested in the area). I don't know the technical difficulties involved with uncapping and finishing up at Rainbow when the time is right, but from my experience in another competitive field it makes good business sense. I worked in R&D for a pharmaceutical company and we all the time trying to get the competition to think we were not interested in something when we really were and trying to get them to think that we were working in another area when we weren't. That is how you play the game in an industry where there is potential for big profits but also the potential for big losses and where the window to make money is quite small especially if the competition can guess your strategy. Well, time will only tell won't it?
Debbie, while I appreciate your comments, Halcon is not just making the well inactive. They are plugging it (a joke, I agree, since there is essentially nothing to plug but an 8' diameter conductor hole). Our understanding is that there will be no Rainbow well as planned and I have other information that suggests other well pad plans in the works have taken it's place. I suspect that the Commonwealth properties that lie both to the northwest and southeast of the intended well may have been it's undoing, however, I have no solid evidence to support that theory.
I think Halcon is bluffing also, thy know the gas is there and they know it's good. Less then 3 miles away Hilcorp is going to be drilling wells on the Morton farm, Lyons farm, and rumor Sandy Lake sportsmanship Club. I live in the middle of all this activity and Halcon is also still leasing according to some of my neighbors. If they are done in the area, then why are they still leasing.
And don't forget the politics factor. I saw an ad on a Pittsburgh station where the candidate was saying that if they get elected they pledge to get an Extraction Tax placed on O&G. Well, now, isn't that a fine way to discourage extraction, especially when you can't get it cheaply to market? Might just see a lot more on hold until after Nov.
Maybe with them filling in some holes with recent new leases they no longer need the Rainbow site, they could drill a lateral that could reach the Rainbow site from the Allam well or close to it. I'm not sure what the reasoning for that is but I know they just leased several hundred more acres in that area and everyone got paid but one person do to deed issues. Halcon and Hilcorp are very active in this area, Shell /Vista, are even starting to slowly pick back up, a bunch of them were at Grathams last week meeting in the banquet room, not sure why?
At gas price trading around $1.50-$2 less then 2 years ago and Hilcorp, Halcon, Shell, Chevron were paying landowners $3000-$4000 per acre bonus and leasing as much as they could and now gas is trading over $6, it's makes no sense for them to not even be more active?
My honest best guess (and it is only a guess) is that substantial leasing and drilling in Western Venango County will occur in 2017. Do I have any facts to support this guess? The answer is "Hell No !" except for the fact that the current clown occupying the White House will at last be out of office. Now that prospect is cause for having at least one celebratory drink, which I believe I will mix for myself immediately. The dead cat has several lives left but the exact moment of its next immediate resurrection is not currently apparent in my crystal ball.
The Allam Well flare?? Is the flame from the re-flaring of the Allam Well still burning brightly? I believe this is day number 20 and that if the flame remains strong and undiminished for 8-10 more days, this would be great news. I hope there are "boots on the ground" that can give an update. I also hope that the news is good. This site has been Deader than a Dead Cat since my last post of May 24, 2014!
Sam was the flaring started about the same time as the Iranian take over of some cities. Sure would be nice if there was more money put into making natural gas cars.
6-29-14 ,7 or 8 I did not see it the morning of the 7th I did the morning of the 8th. Tonight the flare was very large sounds like a blow torch from the road.
Late reply to OWNER'S question, My understanding is that Halcon wants to sell their Venango County acreage and possibly all of their northern Utica holdings though I am not so sure about the latter. I have been told by someone I trust that Halcon did a 28 or 30 day repeat flare of the Allam well in the hopes that the flare would remain strong. If that happened and the well repressurized thereafter, those facts would tend to establish value for the acreage that Halcon wishes to sell. There may be people with more technical knowledge who have a different and perhaps better understanding of what HK's reasons were for re-flaring the well.
James: Have you heard whether or when Hilcorp may drill the 2 parcels that they have permitted near you or your folks property? , I am speculating, (and it is only speculation) that we may not see much going on in our area until 2016, and possibly not until 2017 or even 2018. I have no real facts to back up any of this. Frankly, I hope my guesses are way off and that you and I and a bunch of other people in our area get leased in 2015 and that we get leases with at least decent, if not spectacular, bonus money.
The only thing going on in this area that I know of is Range Resources is going to be doing some work on the pipeline that runs through my moms farm. The landmen told me the wells drilled in this area are very good and they are possibly going to start leasing again. Fwiw
Big News!! Go to Mercer County Comment Wall and read comments over last few days. Halcon seeking permits to build pipeline from Five Points area in Mercer County all the way into Venango county and ending not far from Allam Well. See post by Bob Rock to Mercer county comment Wall where permit application is attached and also Maps of the course proposed pipeline will follow in both Mercer and Venango counties.
More Potential Good News: Yesterday I discovered an article from "The State Journal, West Virginia's only business newspaper". The article is by Suzanne Elliot and is dated November 20, 2014 as updated November 22, 2014. The content and the tone of article suggests that Shell may actually build the plant at the old Horsehead Site in Monaca in Beaver County. See my recent comment to Mercer County Comment Wall.Perhaps by now someone will have posted a link to the article.
See my post of yesterday to Mercer County Comment Wall. Halcon's stock was down over 20% on Friday and closed at $2.27. If crude prices stay as low as they are for even 3-4 more months, I believe Halcon's survival is unlikely. Other small E&P companies also saw their share prices fall dramatically. See Yahoo Finance.
This site is deader than a dead cat. When I last looked earlier today, Halcon stock was $1.49 / share. Why I still have my 1500 shares at $7.42 / share is incomprehensible other than it establishes the fact that I am an idiot!
Halcon (stock symbol HK) closed at $1.20 down over 10% in just one day. If I had any nerve I'd by 5000 shares. I still have my 1500 bought in 2012 at $7.42 per share. Idiocy is idocy is idiiocy. .
JREwing
Nov 6, 2013
Tyler Durden
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...
Nov 6, 2013
JREwing
Nov 6, 2013
jim wade
Can one please tell me what (if any) company is currently leasing in Venango County and how much they are paying per acre? Thank you
Nov 6, 2013
Debbie
Well, someone is working on a pipeline.......today on my way home there were signs (but no equipment or holes in the ground) that said "pipe line construction" "be prepared to stop". This was on Rt 965 between Henderson Station Rd and Hells Kitchen Rd.
Nov 7, 2013
Samuel J. Orr
Debbie: Very interesting observation. Perhaps JR Ewing or other who live near the pipeline construction can get a little more information about who is building what , and from where to where, and for what purpose!
Nov 7, 2013
Samuel J. Orr
This site is deader than a dead cat ???
Jan 21, 2014
Debbie
Things have certainly been slow Sam, perhaps only as dead as a dead cat! Here is what I have observed since Nov: First, on Rt 173 just north of I-80 (Mercer County) there has been some pipeline work. Not much, not huge, but some digging and a small piece of pipes & valves appeared above ground. I don't know if that is replacement of existing infrastructure or something new. Second, seeing more trucks in the Allam area recently but not on a daily basis. Third, our lease with a company that has a "sharing" agreement with Halcon will be expiring mid Feb. An indication of how much they or anyone else is interested in the area will be how fast they come knocking after that date. Our experience has been when one company doesn't want to renew a lease, the next company has been knocking on the door the next day. I'll keep you posted!
Jan 21, 2014
deer spotter
National Fuel Gas will add 7,500 hp of compression at the Tenn. Gas interconnect station at Mercer to be in service Nov. 2014. This will give N.F.G. the capacityto transport 105,000 DTH/D across Mercer,Venango, and Clarion co.
Jan 21, 2014
jim wade
Deer Spotter does that mean the pipelines will be able to handle production from the new horizontal wells?
Jan 21, 2014
deer spotter
Yes. N.F.G. has also completed projects in the Lamont area Elk co. that can move gas from Clarion, Elk, and Jefferson co.and transport gas to the Leidy hub. Also has completed a project in Halbrook Washington co. with an internconnect to the Texas Eastern Pipeline.
Jan 22, 2014
Samuel J. Orr
This site is deader than a dead cat! For a little bit of good news see Mercer County Comment Wall. Hilcorp has two new permits in Sandy Lake Township. I am happy to see some activity that is getting closer to Venango county and to my own property in French Creek Township. (The permits are the preliminary ones that are required before a driller can get the Drill and Operate Well permits.)
Feb 8, 2014
JREwing
Feb 8, 2014
JREwing
Halcon just permitted a pipeline from the Allam well to the Pilgram well.
http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?A...
Feb 21, 2014
JREwing
And unfortunately for the folks involved in the Rainbow well, they have also applied for a permit to plug the Rainbow well.
http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleAuth.aspx?A...
Feb 21, 2014
Debbie
Not unexpected and not totally bad news JR. Everyone knew all along that the issue was getting the gas out of the area. Now obviously they have found enough to like that companies are pursuing the pipelines and infrastructure needed. Pipeline away from Allam has to happen first....looks like that is a go. Pipeline from Rainbow to Allam on hold....expected. Also, from careful looking, it seems as if the Rainbow well was never completely done. (Makes sense, why spend the money if no way to move it out and you already know you are interested in the area). I don't know the technical difficulties involved with uncapping and finishing up at Rainbow when the time is right, but from my experience in another competitive field it makes good business sense. I worked in R&D for a pharmaceutical company and we all the time trying to get the competition to think we were not interested in something when we really were and trying to get them to think that we were working in another area when we weren't. That is how you play the game in an industry where there is potential for big profits but also the potential for big losses and where the window to make money is quite small especially if the competition can guess your strategy. Well, time will only tell won't it?
Feb 21, 2014
JREwing
Debbie, while I appreciate your comments, Halcon is not just making the well inactive. They are plugging it (a joke, I agree, since there is essentially nothing to plug but an 8' diameter conductor hole). Our understanding is that there will be no Rainbow well as planned and I have other information that suggests other well pad plans in the works have taken it's place. I suspect that the Commonwealth properties that lie both to the northwest and southeast of the intended well may have been it's undoing, however, I have no solid evidence to support that theory.
Feb 21, 2014
james
Feb 21, 2014
JREwing
James, I never implied they were "done." Speaking specifically about the proposed Rainbow well only.
Feb 21, 2014
Debbie
And don't forget the politics factor. I saw an ad on a Pittsburgh station where the candidate was saying that if they get elected they pledge to get an Extraction Tax placed on O&G. Well, now, isn't that a fine way to discourage extraction, especially when you can't get it cheaply to market? Might just see a lot more on hold until after Nov.
Feb 21, 2014
james
Feb 21, 2014
james
Feb 21, 2014
Chris Crawley
Halcon was issued new permits today for Allam & Rainbow wells..So much for the "goat pastures"..
Mar 26, 2014
p umpjack
dead cat alert
Apr 14, 2014
Trapper
Apr 14, 2014
Dave
Does anyone know of any great real estate attorneys in the area. Have property despute in kennerdell.
May 24, 2014
Samuel J. Orr
My honest best guess (and it is only a guess) is that substantial leasing and drilling in Western Venango County will occur in 2017. Do I have any facts to support this guess? The answer is "Hell No !" except for the fact that the current clown occupying the White House will at last be out of office. Now that prospect is cause for having at least one celebratory drink, which I believe I will mix for myself immediately. The dead cat has several lives left but the exact moment of its next immediate resurrection is not currently apparent in my crystal ball.
May 24, 2014
Samuel J. Orr
The Allam Well flare?? Is the flame from the re-flaring of the Allam Well still burning brightly? I believe this is day number 20 and that if the flame remains strong and undiminished for 8-10 more days, this would be great news. I hope there are "boots on the ground" that can give an update. I also hope that the news is good. This site has been Deader than a Dead Cat since my last post of May 24, 2014!
Jun 27, 2014
John
6-27-14 Flare at the well is still about 40 feet high.
Jun 27, 2014
Jo
Sam was the flaring started about the same time as the Iranian take over of some cities. Sure would be nice if there was more money put into making natural gas cars.
Jun 28, 2014
Samuel J. Orr
I think that they began flaring Allam Well on June 7 or June 8. John may be able to provide exact date.
Jun 28, 2014
John
6-29-14 ,7 or 8 I did not see it the morning of the 7th I did the morning of the 8th. Tonight the flare was very large sounds like a blow torch from the road.
Jun 29, 2014
james
Jun 29, 2014
deer spotter
Sounds good for Venango county. Anyone know if Chevron has started the 2 new wells on the Brosius pad?
Jun 30, 2014
Samuel J. Orr
This site is deader than a dead cat!
Jul 18, 2014
owner
Does anyone know when they stopped flaring the Allam well? Does anyone have any information on the Brosius site? Thanks
Jul 30, 2014
deer spotter
As of last week nothing new on the Brosius site.
Jul 31, 2014
Samuel J. Orr
Late reply to OWNER'S question, My understanding is that Halcon wants to sell their Venango County acreage and possibly all of their northern Utica holdings though I am not so sure about the latter. I have been told by someone I trust that Halcon did a 28 or 30 day repeat flare of the Allam well in the hopes that the flare would remain strong. If that happened and the well repressurized thereafter, those facts would tend to establish value for the acreage that Halcon wishes to sell. There may be people with more technical knowledge who have a different and perhaps better understanding of what HK's reasons were for re-flaring the well.
Aug 7, 2014
james
Aug 7, 2014
james
Aug 7, 2014
Samuel J. Orr
James: Have you heard whether or when Hilcorp may drill the 2 parcels that they have permitted near you or your folks property? , I am speculating, (and it is only speculation) that we may not see much going on in our area until 2016, and possibly not until 2017 or even 2018. I have no real facts to back up any of this. Frankly, I hope my guesses are way off and that you and I and a bunch of other people in our area get leased in 2015 and that we get leases with at least decent, if not spectacular, bonus money.
Aug 7, 2014
james
Aug 7, 2014
Samuel J. Orr
Big News!! Go to Mercer County Comment Wall and read comments over last few days. Halcon seeking permits to build pipeline from Five Points area in Mercer County all the way into Venango county and ending not far from Allam Well. See post by Bob Rock to Mercer county comment Wall where permit application is attached and also Maps of the course proposed pipeline will follow in both Mercer and Venango counties.
Nov 22, 2014
Samuel J. Orr
More Potential Good News: Yesterday I discovered an article from "The State Journal, West Virginia's only business newspaper". The article is by Suzanne Elliot and is dated November 20, 2014 as updated November 22, 2014. The content and the tone of article suggests that Shell may actually build the plant at the old Horsehead Site in Monaca in Beaver County. See my recent comment to Mercer County Comment Wall.Perhaps by now someone will have posted a link to the article.
Nov 23, 2014
Bob Rock
Here sam try this.
Shell Cracker
http://www.statejournal.com/story/27438415/shell-meets-with-pennsyl...
Nov 23, 2014
shesrushmore
Nov 23, 2014
Samuel J. Orr
Bob Rock: Thanks for the link. It brings up the article out of West Vrginia referred to in my post below.
Nov 23, 2014
Samuel J. Orr
See my post of yesterday to Mercer County Comment Wall. Halcon's stock was down over 20% on Friday and closed at $2.27. If crude prices stay as low as they are for even 3-4 more months, I believe Halcon's survival is unlikely. Other small E&P companies also saw their share prices fall dramatically. See Yahoo Finance.
Nov 29, 2014
Samuel J. Orr
This site is deader than a dead cat. When I last looked earlier today, Halcon stock was $1.49 / share. Why I still have my 1500 shares at $7.42 / share is incomprehensible other than it establishes the fact that I am an idiot!
Jan 13, 2015
Samuel J. Orr
Halcon (stock symbol HK) closed at $1.20 down over 10% in just one day. If I had any nerve I'd by 5000 shares. I still have my 1500 bought in 2012 at $7.42 per share. Idiocy is idocy is idiiocy. .
Jan 16, 2015