Chevron in Tuscarawas

I want to confirm what someone else on the Tuscarawas Discusssion board had heard concerning Sierrra Resources (formerly Sierra Buckeye) and Chevron in Mill Township.  I talked to someone at Sierra Resources who did say that they are now in a Partnership with another Company but did not want to say who because it had not been made public yet. When I asked Chevron? it was confirmed. They are very excited about this because they said that Chevron has all of the rigs, equipment and technology to drill in Mill Township and already has two wells drilled in Tuscarawas County ( a bit east of Mill) with good results.

Leaseholders will be getting letters from Chevron about the Partnership. Chevron will be taking the lead on where and when to drill and it was thought that things should move more quickly now and that a 12 month time period looks possible.  There is still the pending approval that the Mining Companies have to give on sites that Oil and Gas companies want to drill.  Apparently they have first rights to mine areas according to Ohio Law. Sierra Resources had submitted their areas for drilling to the Mining Company not long ago but they have not yet gotten approval.  Chevron will now be taking that aspect of the process over as well.

Chevron has other acreage of their own in and around Mill Township.

Also there have been maps showing lines separating the different areas of "Oily", "Rich Condensate",

"Light Condensate" and "Dry Gas".  As you know Mill Township sits right at the County Line and on the maps it looks to be in the "Oily" window which from my reading is not necessarily a good thing, however it was confirmed to me that Mill itself it is a "Rich Condensate" (Wet Gas) area and that the economics of that is good  drilling for the O&G companies.

If anyone has any thoughts or experience with Chevron or what might be expected I would like to hear it.

But I'm thinking, it is a good thing.

Views: 1950

Replies to This Discussion

Permalink Reply by tena marie west on July 15, 2014 at 2:28pm

Thanks Dott, for letting me know, i have a few good friends leased with sierra and will let them know. Tena

Permalink Reply by Dott on July 17, 2014 at 9:54am

Tena, Just curious how did you hear about Chevron taking over leases

Permalink Reply by tena marie west on July 17, 2014 at 1:37pm

Dott, a friend of mine told me he heard about it and is leased with them, he works for a small  oil and gas company around here but has nothing to do with these big companies.he wanted to know if it was true because he knows i read this stuff on this go marcellus sight, tena

Permalink Reply by Paul Martinelli on July 16, 2014 at 2:01am

Dott,

I think it is great news.....Sierra has been sitting on its leases for too long. Chevron is a "Oil" company, so that is a good sign too.

Is Chevon picking up only the leases in Mill/Rush townships....or are they interested in all Sierra Leases?

Keep the info flowing......Thanks

Permalink Reply by Dott on July 16, 2014 at 6:23am

Paul,

I am not sure but that is the impression I got.  My acres are in Mill Township so that is what I  specifically asked about but Sierra seemed to be speaking to me in broader terms not just singling out my acres. In my opinion if Sierra has gone into Partnership with Chevron in that area I would think it would also include all leases in Tusc. because that had to be a huge well thought out deal.

I was looking up Chevron owned wells  that Sierra said was to the east with good results. I think the wells are Kinsey and Wagner in Harrison County. I have not had time to look at the Production numbers. 

Permalink Reply by Paul Martinelli on July 16, 2014 at 6:38am

Yea...all I see are the Kinsey wells:

~120 bbls /day  and 750MMCF/ day 

Permalink Reply by Dott on July 18, 2014 at 8:41am

The Good news is with Chevron involved maybe drilling will begin in the area. The bad news is now that I have done some research I have found that like Chesapeake, Chevron has been sued many times for underpaying

royalties and selling products to their own sub-companies.  

Permalink Reply by Paul Martinelli on July 18, 2014 at 9:08am

Read your lease:  it may specify sale as

If gas produced from the Leased Premises is processed for the recovery
of liquefiable hydrocarbon products prior to sale, and if such processing plant is
owned by Lessee or any Affiliate of Lessee, the price upon which royalty shall be
based shall not be less than that which would be obtained from an unaffiliated
third-party processor in an arms-length transaction involving similar gas
volumes, quality, location and length of term of the contract.

Permalink Reply by Dott on July 18, 2014 at 10:59am

Unfortunately I inherited the lease and although it does not allow for direct deductions it does have an "Enhancement Clause" with suspect language. It has nothing like the above language  which was introduced to people recently as we all learned of the O&G tactics.

Permalink Reply by Frank on July 18, 2014 at 4:04pm

I wonder if the Sierra-Chevron group will be drilling in the Gnadenhutten area before long.  They have until December this year to drill or they will owe landholders $1000 per acre.

Permalink Reply by Stephen W. Albery on July 19, 2014 at 11:15pm

Any contact info for Chevron? We have acreage in Mill, Warwick, and Union.

RSS

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

Badges  |  Report an Issue  |  Terms of Service