Welcome, Aubrey

Guernsey County welcomes Aubrey McClendon's American Energy Partners regional office. To be built in Cambridge,Ohio. Industrial Park,next to Airport.  Confirmed today in the Daily Jeffersonian newspaper.May need to get the runway lengthened, jets will be getting bigger.

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Permalink Reply by evan on January 15, 2014 at 1:42pm

Gonna be interesting to see how he runs this business. Good luck to him I think

Permalink Reply by James Vanderink on January 15, 2014 at 2:04pm
It's going to be interesting to see this topic/post a year or two from now.
Permalink Reply by Lane Mitchell on January 15, 2014 at 2:34pm

I'm in Noble County, and AEP called yesterday. Wants to amend my lease and take it from 640 to 1280 acres. I don't think that's a good idea, but from what I have read, there might not be anything I can do, unless all of the people get informed and say no.

Permalink Reply by pinehill on January 15, 2014 at 2:39pm

So far all three wells they have permitted have 640 or less.  We went through that last year, we did not agree and we have not been contacted since.  They are not yet drilling in our area.

Permalink Reply by Booger on January 16, 2014 at 3:28am

Mitchell - it only takes one to say no...........if everyone in the 1280 amends, then they can make the unit 1280.....if one person in the 1280 does not amend, then they will make 2 units at 640.......they can (and have) made even smaller single bore units where folks would not ammend leases which limited them to smaller units.

the advantage to them to get folks to ammend to 1280 is - they can drill a single bore and hold the entire 1280 by production.

i'm not convinced that there is a long term advantage to the landowner either way.......it's kind of a gamble.

Permalink Reply by Lane Mitchell on January 16, 2014 at 9:13am

I am under the impression that this is unitization. If I am wrong, give me a term to identify what it is. That's what the gentleman on the phone called it. Just reading the posts from Jan. 12 and 14 of this year on GMS indicates that, if AEP wants it, they file with the state and the state says yes or no. I will know more in a week or so, that's when we are to have a sit down and hear what they have to say. Thank you for the information. This is why I'm on this site. To keep informed. To much stuff to wade thru to get to the bottom of things. Hope to see more discussion on this. With all that AEP acquired, I can't believe Noble County is the only place AEP will be doing this. No one on the Noble County page is talking about anything. 

Permalink Reply by The Hiker on January 16, 2014 at 12:37pm

Mitchell:  Booger has it right.   You only have to say "no".  They cannot get "permission" from the State to expand your unit to 1280 unless all agree.  Otherwise, they are limited to whatever it says in all of the leases.   I vote for 640 max for the reason Booger mentions.   If they have a lot of land to drill and hold, chances are they will not get to all of it in the limited time of ~5 years or so (depends on lease language) and thus will be forced to pay a second "bonus" for an additional amount of lease time if they don't drill during the primary term (depends on your lease language, but if you have this, it's a good thing).  But, if they can expand all units to 1280, it cuts this problem in half and they save a lot of "re-lease" money.  Clever.  Tricky.  Not in the landowners best interest.

Following the pattern laid down so far by the other E&P companies, AEP will next offer you $$ to sign.  If you like, make them pay a hefty amount and take it.  If not, just say NO.

Permalink Reply by harleyowner2003 on January 21, 2014 at 6:03am

You can just say "no thanks" to amending your lease.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on January 15, 2014 at 3:25pm

He bought Anschutz but that project wasn't run by him nor was he the one who put up the money.

Permalink Reply by Chris on January 15, 2014 at 3:40pm
TS Dudley is just a land service company. They work for multiple producers at any one time
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on January 15, 2014 at 6:19pm

I don't know but I know it doesn't matter.  The land service team isn't told anything beyond "here's where you're leasing, here's the price you pay, here's your company's day rate".  Anschutz was prospecting for conventional shallow wells and taking a shot that the Marcellus maybe extended deeper into Ohio than they originally thought.  They fell backwards into the Utica, much like Enervest.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on January 16, 2014 at 3:39am

What was happening on August 1, 2008?  We were one year--almost to the day--into a global liquidity crisis.  Enervest needed someone with cash and Philip Anschutz had it.  That has nothing to do with CHK or Aubrey.  

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