Here in the Eastern Guernsey county area we are seeing a company use a helicopter to lower seismic testing supplies into remote areas.

This area is being drilled, or rather was before oil prices fell, so my question is what are they looking for ?

A representative of the company doing these surveys/testing came to our house last summer asking for permission to our land, which we had already denied them over the phone and by mail.

He told me quite frankly that if we were leased it was in our best interests to allow them on our property. I told him of the high drilling activity even though I am sure he was aware of it and asked him what they were looking for since the presence of the Utica is already a sure thing.

He would not straightly answer my question or even address it so I asked them to leave and not come back. I don't regret that decision nor do I question why others allowed them access to their property for these tests.

But to this day no one has been able to tell me what they are looking for.

By the way, the monetary compensation for allowing access to test on our property was the generous sum of $5 an acre.

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You need to remember that shale formations are not homogenous.  So while it is reasonable to say that an area like Eastern Guernsey has shown some strong results it is not out of the question for an operator to want more data from which to extrapolate the prime spots.  

I don't think you understand fully the scenario here. They are testing in areas that are already drilled. In other words, unitized pools of acreage, drilled and in some cases completed wells.

Are you saying that they would pull wellheads and plug the bores to move over a little  to drill these units over ?

I contend that they are looking for something else, something that is not the specific shale formation they are currently drilling and producing from.

Thank you for the response,

David

Before adding wells to a unit it would be instructive to have more seismic data.  The better the data the better they can design the wells.  At a time when these wells are unprofitable it seems reasonable to get as much information as possible and use that to model capex plans. It's pretty unlikely that there's some secret formation down there that is going to be more profitable than the Utica.  

My understanding is that the geological formations above and below the Utica are such that the Utica is able to hold the product. I thought maybe they were looking for similarities in other formations, perhaps deeper than the Utica to explore.

Technology moves fast and so does the possibilities for extraction of what was once considered off limits.

I am not saying there is a secret formation, but I think it is most likely that they are looking for something else they think can be produced, not enhancing their picture of what they are already drilling.

I could be wrong, if I knew what they were doing I would have started a different thread.

Additionally, if they are doing as you contend, why not just come out and say that, it seems harmless enough ?

"Additionally, if they are doing as you contend, why not just come out and say that, it seems harmless enough ?"

Rule #1 in the oil patch: never tell outsiders what you're doing until you've already done it.

Fair enough, but it seems harmless to say that is what you are doing if you already have the units locked  in with leased properties.

Personally, I hope it is another formation that can and will be produced. The most consistent aspect of the seismic testing being done here is that they are independent of the oil companies and that they are doing these surveys and then selling the oil and gas companies the results, not that they are working at the behest of the oil and gas companies.

Again, I could be wrong, but that is the best information I have un-covered yet.

The guys coming to your door for the seismic permits don't fully understand what and/or why the operator is shooting the seismic.  They are just simply contracted to acquire data.  If as you say, the area is already pooled and in some cases completed, my guess is they are shooting the area to better understand the geology because something occurred while drilling the lateral or they want to better optimize their completion techniques.  If you want the answer, to your question, you would be better of asking who hired the contractors and then calling the operator and speaking with their geologist. 

They are doing this all over the area, not just over one lateral or one unit.

Again, the only information I can get, which is also the most consistent, is that they are not hired specifically by an oil and gas company.

I am told they are doing the survey and selling the information to the oil and gas companies, not as I understand you as a request from a specific entity in the business.

I would not know who to call because of the above mentioned.

Thank you for the response.

This is what they call a spec shoot.  They are shooting over a large area in hopes to be able to a market it too the oil & gas companies.  Many companies are not shooting their own seismic at this time due to the Energy prices, so Seismic companies will design these large shoots in an effort to sell the data and keep shooting.  They shoot such large areas that they will lease what they can and shoot around those that do not sign.  Sometime with these types of shoots you may only have Geophones strung out across your property.  Often times, they will just run Vibroseis trucks down the road as the source for the data.

Geoman,

This is what I suspect is happening, that it is as you termed it a "spec shoot".

But the ground here is leased and there have been many wells drilled into the Utica in the very same areas they are surveying.

Would you suspect they are trying to get  better idea of what has already been drilled in hopes of applying it to other wells to be drilled or might there be more formations to be developed and extracted ?

Thank you for your response.

My understanding is that holes are drilled, small charges are detonated, and seismic sensors interpret sound echoes that reflect the layers below ground. So, they are basically reading where the highest concentration of gas/oil is likely present. I leased with Chesapeake and the lease says that they can do seismic testing, so I figured 5 bucks an acre is better than 0 bucks that Chesapeake would pay.
Also, my lease says that if Chesapeake explores they can re-up without paying a renewal bonus. This way, thus far, Chesapeake has done nada.

Brett, are you saying that CHK can renew your lease for another 5 years without paying you a bonus, if they have a seismic test done?

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