IS SHELL Slowing Down In Tioga County PA?

I heard a rumor today about SHELL. I heard that they were slowing down all drilling and shutting down drilling until 3D testing is done?  Could be up to 24 months.  Is this true?  Does anyone have any facts? What will happen to the commercial business and rental market in the area? 

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Permalink Reply by cheliped on July 11, 2011 at 4:17am
doesnt seem like an increase.  do you know how many permits were issued in worth township, butler county.
Permalink Reply by jeff k on July 11, 2011 at 5:22am
None...Don't know for last year
Permalink Reply by cheliped on July 11, 2011 at 6:40am
thanks
Permalink Reply by N Bohl on July 11, 2011 at 3:16am
One thing to keep in mind is that a lot of permits last year in Tioga Co. were issued to East. East had begun the scramble to hold certain older leases by drilling those first Verticals to create proper units and up on high East knew full well that they were going to sell it all soon. So I imagine a lot of activity was done with a sale in mind whether getting permits, leasing or drilling. They were essentially guaranteed a massive return for every acre they had leased let alone unitized with that sale on the horizon. My hope is that Shell will be far more methodical and professional than East could have been with an eye on the long term , overall return on their work as well as a concern for not just how they are perceived by the public but what the various real life consequences are for Tioga County and it's people. That's my hope at least and I want to believe that it would be good for Shell and their stock holders as well. So if they need to slow down - no problem, not a big deal. I hope too that they are a little more fair to the unleased than East seems to have been.
Permalink Reply by Quincy Spitzer on July 11, 2011 at 3:34am
They should also consider the impact on  the local economy, allot of familys that donr own mineral rights or land are depending on the work, and trickle down business.
Permalink Reply by Ann Ticopa on July 11, 2011 at 4:52am
Another consideration is that appoximately half the 2010 TC permits were for drilling on public land.  According to the DEP spreadsheet, there were 630 Marcellus permits issued in 2010, 298 of which were to East/Swepi.  The other companies are primarily drilling on public land.
Permalink Reply by Robin Jackson on July 10, 2011 at 3:53pm
I should of said PA ..sorry but 2,461 total for PA..
Permalink Reply by scott brion on July 12, 2011 at 8:23am

Hi Zach,

To the contrary, I think you will see Shell ramp up activity in Tioga county overall.  They added a rig recently and now (end of june) have 5 rigs running.  I am not sure but I don't think East ever had more than 2 Hz Rigs. Shell needs to do a fair amount of drilling to hold leases and they also need to build up their operating capabilities and infrastructure so they have the ability to ramp up production relatively rapidly in response to market conditions.   Their current drilling is sufficient for the first part, but is probably not for the second part.  That said, it is definitely true that 3d seismic is a very valuable component of the drilling plans so it is possible that they may slow down production drilling in certain areas to allow time for new 3d seismic to be conducted and then incorporated into their model.  

Permalink Reply by paleface on July 13, 2011 at 10:03am
 Shell is drilling an 8 horizontal in sullivan township east of Mansfield Wood is the name. Tioga county
Permalink Reply by Tom Brian on July 13, 2011 at 1:09pm

northern tioga county , looks like they are waiting for seismic to do the frac wells they have a lot of pads with a hole drilled and ready finish. meantime expect to see pipelines and road work to pickup.

wooden stakes with gps data showing up in the area where gathering lines are expected to run between pads? talking to people in area seems most all the land outside towns is leased and ready to go just wait and see for  now.

Permalink Reply by randall gottus on July 13, 2011 at 12:32pm
Shell is getting very active in northern butler county ,pa. and as of 7/11/11 they have increased their bonsus to 3k an acre. I am hearing from landowners that Shell is working with them and their attorneys with the leases and addendums.  Alot of landowners are getting together with landman and their attorneys there,and do not want to sit on the sidelines thinking they have a guarantee that the longer they hold out the more money they will get. I heard that once Shell gets enough of leases, they will begin production, and work around the landowners who keep holding out for more money.  
Permalink Reply by paleface on July 13, 2011 at 1:59pm
 I agree if someone holds out and they drill the unit the gas company is not gonna come back to drill a 50 or 100 acre track it would cost more to bring there giant rigs back just for one small lot when they are gone there gone.

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