I think I've found the crystal ball for Pa's future

As anyone knows trying to find the answers can be frustrating. I came across this website with an article

Ultra Petroleum's CEO Discusses Q1 2012 Results - Earnings Call Transcript

that starts off slow and boring but, as I read I slowly started to see the light at the end of the tunnel. They're cutting back the drilling rig count in Pa by 40% Make sure to read the Q&A tab as it gets interesting as investment firms ask questions about the future plans of O&G, and the greater picture comes together. For those people looking to get rich quick, not good news. The way I read it is they're going to drill to HBP but not complete a lot of the wells saving millions of money spent per well of gas they can't sell. It's cheaper to pay shut in fees. They don't expect an increase in the price of gas this year. An answer to the question of how high does the price have to be to increase the rig count was $4.

THE PRESENTATION

http://seekingalpha.com/article/557131-ultra-petroleum-s-ceo-discus...

THE Q&As

http://seekingalpha.com/article/557131-ultra-petroleum-s-ceo-discus...

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Permalink Reply by Kathleen on May 12, 2012 at 7:50am
Anyone learning or interested these reports are very informative.. I didn't read this one yet but I read the Chesapeake one months back all the way to the question answer. the question answer was fascinating to read. You learn to look at it a little different if you are a landowner just looking to be in a unit. So much rides on each decision they make and how the economy is doing and if they can convince the investors asking the questions that their way is the right way.
I hope people read the reports freely now and than. I'll read this later so if it is boring I'm in a place to nap:0).
Permalink Reply by Brian Day on May 12, 2012 at 3:53pm

If I was a member of the Pa. legislature, hoping on big tax revenues from royalty money in the future, I'd be looking at the definition of HBP really closely to see if it needed some changes.  If I have to wait decades for royalties from my land at $5 an acre, I'd probably just as soon wait at $0 an acre with the chance at signing a new, more lucritive, lease in the future with a different company.  If I were a Shell or Cheasapeake executive, I'd get a little concerned at loosing even the money invested on single vertical wells and the corresponding pads and infastructure if the laws changed so that HBP meant a horizontal well hooked to a pipeline network.  The northern area of Pa. was poor before, but at least common folk owned all of it to the center of the Earth.  With HBP as it is now, the gascos really control what happens or doesn't happen there and the residents are practically serfs waiting on an uncertain future.

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