Shell's loss of interest in Marcellus Shale.

What  will happen to the undeveloped wells/units now that Shell has lost interest in Marcellus shale production?  Will Shell sell out to other companies?  Timeframe?

Views: 7226

▶ Reply to This

Replies to This Discussion

Permalink Reply by Jon on April 28, 2014 at 10:55am

I don't get why lack of pipelines gets brought up with them. It's not like they didn't know that before they started leasing and other companies have no problem putting them in anyway.

Permalink Reply by Tom Brian on April 28, 2014 at 11:47am

Free Home Gas?

Some 70 to 100 year old low pressure wells in n/c Pa. have been heating homes for at least 60 years ( an eyewitness report ) compare these to the modern, deep, high pressure horizontals that have a static pressure of over 2000 lbs. psi. just maybe  if these well are depleted down to a controllable pressure the would be safe to use locally, only  if allowed to be given back to the landowner and not plugged.  this is basicly what i was told 6-8 years ago on an old lease signing.                                         Looks like there is no free lunch...No hookup to high pressure .

Permalink Reply by craig on April 28, 2014 at 2:15pm

I'm not convinced Shell is giving up on the shales in our area.

From the WSJ article on Shells new CEO published today:

"Over the next year, Shell will cut its capital spending, he said. The company already has begun trimming underperforming exploration assets. One focus, in particular, has been North American shale, from which big companies like Shell haven't been able to profit as easily as the smaller companies that were pioneers in extracting shale gas. Mr. van Beurden said the company will sell its properties in Texas' Eagle Ford shale and start running its remaining shale assets with a focus on controlling costs the way a small exploration-and-production company does.

"I have no reason to believe we can't beat the small E&Ps at their own game," he said."

Permalink Reply by Tim Tarr on April 30, 2014 at 3:14pm

Shell doesn't like "small " projects. Especially many small projects. Would rather have a project for $2B not 100 projects at $20,000,000 each.

 Just a numbers thing. Takes too many people for that $20,000,000.00 and 100 locations project. I'm not going to offer any suggestions on how Shell should run their business. I would love to run an office to develop their rights though. Won't have to pay me a salary just 2% of return above shells ROI. 

Permalink Reply by Trapper on May 1, 2014 at 9:50am

Can someone please post links to these articles stating Shell's plans to divest from North American shale plays? Thanks in advance!

Permalink Reply by Jon on May 1, 2014 at 10:58am
Permalink Reply by paleface on May 1, 2014 at 12:29pm

I appreciate the Shell articles but I think there PR department writes those to make the stock holders feel more comfortable with the direction Shell is headed in and to make them think they are cutting costs.100 hundred billion plus in stock that is out on the street,we have to help them out and take the 300 dollars an acre lets have a benefit for them.

Permalink Reply by Trapper on May 1, 2014 at 1:28pm

Thank you Jon.

All dry gas in NE PA......Since these articles were published Shell held a "meet & greet" with Beaver County folks to discuss (but not confirm) the Cracker project........They held that open season for potential ethane suppliers last year and signed on a few.........Hilcorp is one of them and they are poising to bust wide open in their part of Lawrence County (13 new pads planned this year). They (Hilcorp) appear to have taken on a new partner too with a bag full of capital to assist their boom.......Mixed signals galore! Confusing times for those of us leased to Shell in Wesern PA. They are tight lipped about the wells they have drilled in this vicinity but do have a couple selling gas. They keep poking holes at the Patterson site......October,2016 my lease is up with them. We'll see if they exercise their re-lease option or not (same terms).

Permalink Reply by Jon on May 1, 2014 at 2:08pm

No problem Trapper. My lease expires in 2016 as well. It makes me a littler nervous that they might renew and not drill and their well. Apparently they aren't doing the best anyway. Why is it difficult for a big company to compete? Who knows what's going on with them. How are the ones selling gas doing? I'm pretty sure the ones in butler county are plugged. There are two others that had permits issued though.

Permalink Reply by Trapper on May 1, 2014 at 2:51pm

Who knows what they are really up to? There are several wells drilled at the Patterson and only 2 are selling gas. I'm thinking (hoping) the others are wet gas and are in reserve til the cracker is going. I have heard the people in the unit are being paid pretty good royalties. I don't recall exact amt. but I think It was around $280.00/acre/month. Not too shabby considering those folks leased really early for 12.5%. I think Shell is doing better in this part of the state. Best of luck to you Jon! I would settle for another signing bonus , but like you , would much rather get drilled and see some royalties! LOL

Permalink Reply by Jon on May 1, 2014 at 3:21pm

That sounds like a decent deal. hahaha. Definitely! Iooked at their data on dep and they seem to average 4 wells per site, with some as high as 9. Hopefully, we'll be the lucky ones if they start moving.

Permalink Reply by randall gottus on May 2, 2014 at 11:03pm

...Rex Energy just recently signed a 20 year Gas Transportation   Agreement with Dominion and Texas Gas LLC to use their existing pipelines to transport natural gas from Butler County to the Midwest and Gulf Coast. This is good news for Butler County, esp.the mid and northern parts. And yes, Rex would like to have Shell s leases, but now Shell is taking a second look at those parts of Butler county, despite the massive structural problems that they are experiencing.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service