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Permalink Reply by George Mac Pherson on December 11, 2012 at 1:57pm

If it is leased By Chevron they will drill it they r in the process of drilling a well in nickelville pa

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Permalink Reply by John on December 12, 2012 at 2:46am

Is the well in Nickleville on property that has an old Atlas lease?

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Permalink Reply by bill on December 11, 2012 at 2:19pm

I am in the same boat John.  I am sitting on 54 acres HBP by a well that isn't on my property but I share the royalties.  I have received a letter from a Texas company that is interested in purchasing my royalty rights but that is something I am not going to entertain.  They (I think Hillcorp) have started a well pad about a 1/2 mile from my property.  I think it is called the James well located next to Flynn's Tire on 62.  I don't have information like who is included in production unit.  It seems we HBP are flying blind.  I wish Chevron or Hillcorp, or however our old leases have been sold to, would step up and provide us with information like what their intentions are for our property.    

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Permalink Reply by John on December 12, 2012 at 2:48am

Bill I drove by the well next to Flynns, but am unsure if it is on property with an old Atlas lease.  There certainly are old Atlas wells nearby.  I may repost this question on the Mercer County site once I become a Mercer County member.

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Permalink Reply by Jim Litwinowicz on December 12, 2012 at 3:20am

John; I don't think even the companies themselves know when any one area will be drilled. This Utica is a new and unknown quantity. They are drilling test wells in various areas to get a better understanding of the play. Then they will assess the results and put together a development plan.
It is my guess that there will be 20 to 30 wells drilled in the tri-county area of Lawrence, Mercer,and Venango in '13. Add in a couple of wells in Crawford. Then, if they get good results, you will see an explosion of activity in '14 and beyond.

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Permalink Reply by John on December 12, 2012 at 5:31am

Thanks Jim.  I do see frac water distribution facilities being built, which indicates growth into Mercer County. 

1 site is on the Mercer Cty/ Butler Cty line, on Browntown Rd off Rte 173, between S.R. and Grove City.  It's the old Meadowlake Golf Course property and owned by a S.R. man.  The old course has a very large lake (10 acre?).  SWEPI is drilling on Shields Rd (6-8 laterals) and Harmony Rd not far from there.

Then there is one in West Middlesex on Rte 18 just north of Rte 551 intersection. I see KYPA Enterprises on the sign, which is a fella from Hermitage. They'll be drawing from Shenango River.

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Permalink Reply by Jim Litwinowicz on December 12, 2012 at 5:48am

As for when HBPd parcels will be drilled; On one hand they will want to drill newly leased properties in order to HBP the rights. But, at least in Ohio, they seem to be drilling on parcels under old leases first. Speculation is that they are drilling these first with small units because they only have to pay 12.5% with deductions.....about half of what new leases with 17-18% and no deductions. Better ROI for them on older leases.
Another consideration is that most land around these parts is smaller parcels....50 to 100 acres. And the HBP parcels are scattered about with land that wasn't leased until recently. So that means if they declare a large unit then it would consist of both older, HBPd parcels and ones with newer leases. So it may not matter much if you are in an old lease or a new one. Geology and proximity to gas lines will the major determinants.

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