Where Can I Find Geologist / Consultant

I am looking to find a very creditable and affordable consultant to evaluate / appraise and do a geology / gas in place figure / and approx royalty return on the Marcellus and Utica shales for a property located in Tioga County PA

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Permalink Reply by James Foster on July 21, 2014 at 4:25pm

If that were possible don't you think every oil company would hire such an individual? The only way to kmow what is down there is seismic testing and you would have to pay to have that done or buy that info from company that already paid to have it done in your area. I doubt they would sell it and if they did it would be quite expensive. And then you could take a core sample which would require a rig and drilling down to the Marcellus and/or Utica. We would all do that if we could afford it. Then you could lease your land with knowledge, but the oil companies would also have that knowledge and know if your land was boom or bust.

Permalink Reply by Jeffrey Beunier on July 28, 2014 at 6:33am

Why not do some research and gain some understanding?  I think that utilizing some research and gaining some knowledge is a much better approach than throwing your arms up in the air and surrendering - furthermore, without knowing if your land is of high potential, then you are walking into any negotiation blindly.  As far as information sources, core data for certain areas can be found wells on the USGS core repository website.  Well logs, etc can be found on state regulator sites or through commercial sources.  Additionally production data can be found in a variety of places.   

Permalink Reply by PA Joe on July 22, 2014 at 2:22am

That is possible and I know someone who can help you. Send me a mssg and I will get you his contact info.

Permalink Reply by Kangoo on July 22, 2014 at 4:19am

Gas/oil in place is the easier of the tasks and a geologist could probably get a rough estimate with some decent maps.

However recoverable reserves (which is what pays the company producing the hydrocarbons and you as mineral owner) is a totally different question and a geological consultant, etc.... won't be able to answer this (if it was so easy, oil and gas companies wouldn't employ so many geologists, reservoir engineers, petroleum engineers, etc....)

The best estimate for what you are looking for is probably to get a consultant report, like the ones ITG offers. ITG is an independent investment advisory/research firm (and used by many banks and oil/gas investors). Contrary to many conspiracy theories on this website, they are paid to provide an unbiased view of the play for external investors (and not to talk the play up or down).

Might be worth to send them an email and see what it would cost to buy a report on the Marcellus and Utica or maybe just get their reserve estimates for your area.

 

Permalink Reply by Brandon Nuttall on July 22, 2014 at 4:23am

There are several resources available. Contact the local affiliate of the Association of Independent Professional Geologists (AIPG). You can also contact the National Association of Royalty Owners (NARO).

Permalink Reply by John Marshall on July 22, 2014 at 8:30am

You need a geologist to map the thickness and depth (and/or structure) and a reservoir engineer to estimate the Original Gas In Place or Original Oil In Place (OGIP, OOIP). Modern open hole logs need to be available to provide porosity and water saturation of the zone. The whole process is not overwhelming, depending on the size of the area mapped, and shouldn't be outrageously expensive. Royalty estimates will be based on the % of OGIP recoverable X price of product X ORRI. Don't want to be too negative here, but the Marcellus in Tioga County is a little on the thin side and a little shallow, although reports of good liquids have been seen. Utica should be dry gas and have higher reservoir pressure because of depth so possibly better OGIP, depending on porosity, etc.

You don't need 3D seismic to evaluate the reserves. Seismic is used for the drilling phase, to stay in zone, and to get a general idea of structure. It is also being used to estimate reservoir quality, but that is proprietary to the very few companies that has gotten that far technologically.

I'm sure there are geologists and engineers who are knowledgeable and available. Maybe one will speak up here.  Good luck to you.

Permalink Reply by Jack Straw on July 22, 2014 at 9:08am

To add to John’s well thought out comments; particularly with respect to “Royalty estimates will be based on the % of OGIP recoverable X price of product X ORRI.”

A Geologist and Reservoir Engineer can give an idea of OGIP; but the ultimate amount potentially recovered (and royalties potentially received) are strongly influenced by factors beyond the control of the physical data/information immediately at hand.

The problem is that the Recovery Factor (though strongly influenced by factors such as porosity, total organic carbon, and depth of burial/reservoir pressure) will be determined to a great degree by the success and the efficiency of the frac job. The more closely an operator achieves an optimal frac; the higher the Recover Factor; all other variables the same. The more mature an area is, over time Operators learn what works best, and technological advances assist in improving results; the financial difference between achieving a Recovery Factor of 8% of OGIP and achieving a Recovery Factor of 14% of OGIP is dramatic. A Geologist and Reservoir Engineer can give an idea of OGIP; but the ultimate royalties received will be strongly dependent upon how successful the well completion turns out to be.

Next, the ultimate royalties received will be directly proportionate to the price achieved when production starts and the price achieved during the life of production. The price achieved is a ‘moving target’; moving in a complex and unpredictable fashion.

The factors which affect the ultimate royalties received which cannot be predicted in advance might well turn out to be more important than the solid information a Geologist and Reservoir Engineer can presently provide.

While we all search for 'rock solid' answers; sometimes all we can do is wallow in the mud.

All IMHO,

                    JS

Permalink Reply by bungalow_steve on July 22, 2014 at 10:31am

Just look up gas production rates for wells around your land at the pa dep web site.

Permalink Reply by Gas Boy on July 22, 2014 at 10:34am

Contact the PA Geological Survey in Pittsburgh (412-442-4000), and ask for Kristin Carter - she's the Department Chief of the Subsurface Section.  She will know of someone.

Permalink Reply by Gringo on July 22, 2014 at 1:57pm
First Q is for what purpose? Tax depreciation, estate planning, ect. I have seen many for Tioga County and they were not cheap nor credible, but served the purpose of cost basis for transferring assets into trusts. Depending on purpose determines who to use.
Permalink Reply by Zack Smith, Geologist/Appraiser on July 24, 2014 at 1:38am

Good morning,

I'm a geologist with Congdon & Company in Endicott, NY and we do valuation of oil, gas, and mineral rights in PA, NY, and OH. The first question would be what is your intended use of the study? For any application that involves taxation and the IRS, e.g. severing mineral rights for placement in an LLC, FLP, or for gifting, the appraisal is expected to be completed within 6 months of your filing date and should be signed by a Certified General Real Estate Appraiser (in PA mineral rights are legally treated as real estate). Typically, our reports are written/signed by both a real estate appraiser and geologist (me). If there is potential litigation involved we will sometimes also use a petroleum engineer as a reviewer.

Our website is congdoncoinc.com or you could call Bob Congdon at (607)757-0435, he could get you squared away on the legal requirements of your intended use.

Permalink Reply by Pro Geo on July 24, 2014 at 2:48am

I am a licensed geologist in the State of Pennsylvania and I have my own shale gas consulting company (www.shalelandandmineral.com).  Please contact me through the website if you want to discuss.  Thanks, Dave

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