shell sells and picks up acreage

the article in the times today said shell sold acreage to rex and picked up acreage in pa.  where did they pick up the acreage in pa?             http://www.timesonline.com/news/local_news/shell-sells-shale-gas-ri...

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Permalink Reply by pg guy on August 15, 2014 at 8:27am

Potter and Tioga County PA.  From Ultra Petroleum.  Very interesting, as Marcellus potential in Potter seems to be increasingly regarded as marginal, even sub-economic at current gas prices.  It would therefore seem that Shell's interest is in the Utica, very deep there, or something else not on anyone's radar....?

Permalink Reply by mark ondrusek on August 15, 2014 at 9:19am

thanks pg guy!

Mike MurphyPermalink Reply by Mike Murphy on August 16, 2014 at 6:41am

Royal Dutch Shell, which has been reshuffling its shale gas portfolio in the U.S., announced three major deals this week, one of which adds 155,000 acres to its hot spot in northeastern Pennsylvania where the company is among the first to bet on the Utica Shale.

The Dutch energy giant, whose subsidiary SWEPI LP controls about 900,000 acres in Pennsylvania, has been developing Marcellus gas in northeastern and Central Pennsylvania under a joint venture with Houston-based Ultra Petroleum Corp.

The two companies also have a joint venture in the Pinedale Anticline, another gas-rich formation in Wyoming.

On Thursday, Shell announced it will sell its Pinedale assets to Ultra for $925 million and gain 155,000 net acres in the Marcellus and Utica shales in Tioga and Potter counties. The areas also come with about 100 million cubic feet of daily natural gas production.

The transaction is expected to close in the third quarter.

Marvin Odum, Shell’s upstream Americas director, touted the company’s Utica interests in northeastern Pennsylvania while commenting on the deals.

Most operators tapping the Utica — which lies below the Marcellus — are doing so either in eastern Ohio, where the Utica is rich with liquids, or in Western Pennsylvania, where the play is mostly dry but prolific.

Shell is the only operator drilling Utica wells in Tioga County in northeastern Pennsylvania.

The company said it has “completed a comprehensive evaluation of this highly attractive exploration area,” according to spokeswoman Destin Singleton.

According to data posted by the Pennsylvania Department of Environmental Protection, Shell has drilled 18 Utica wells in Tioga, and at least 26 in other parts of the state.

This year alone, Shell drilled 14 wells in Tioga, both Marcellus and Utica, and plans to drill more before the end of the year. The Utica emphasis comes from the company’s promising results there, Ms. Singleton said.

“We have strong individual well production rates from our initial exploration wells there, and those numbers have remained stable for several months,” she said. “In fact, our early results are on par with some of the better Utica wells in the emerging dry gas sweet spots in southeast Ohio.”

Elsewhere in the U.S., Shell is shedding shale gas holdings.

The company announced Thursday it is selling all of its Haynesville Shale assets in Louisiana to Vine Oil & Gas LP and Blackstone for $1.2 billion in cash. The assets include 418 producing wells, 193 of them operated by Shell.

On Tuesday, Shell agreed to sell to State College-based Rex Energy Corp. 208,000 acres in Butler, Armstrong, Beaver, Lawrence, Mercer and Venango counties in Pennsylvania, and in Columbiana and Mahoning counties in Ohio. Shell will get $120 million for the deal.

Permalink Reply by mark ondrusek on August 16, 2014 at 8:46am

thanks mike

Permalink Reply by Dolores Chobert on August 17, 2014 at 10:57am

Any idea what that means for people holding leases with Ultra. We're already receiving royalties. Will it affect us in any way

Permalink Reply by Andy Berenty on August 23, 2014 at 4:52pm

Dolores,

A question I'm curious, as a Ultra royalty owner, is Ultra making improper royalty deductions from your check?  I would really appreciate any response.

Permalink Reply by Dolores Chobert on September 4, 2014 at 8:34am

theres a wellhead adjustment deduction

Permalink Reply by Andy Berenty on September 4, 2014 at 2:49pm

Dolores,

Are you alright with the wellhead adjustment deductions?  Does your lease addendum regard these deductions as improper?  I am addressing these deductions  with very little success.

Permalink Reply by Dolores Chobert on September 4, 2014 at 4:30pm

I did check into it , and Ultra said something about it a fee for transporting and any maintenace they do . Thats what the girl told me when i called . Not sure she was even sure about it and the i didn't persue it any longer. 

Permalink Reply by Andy Berenty on September 4, 2014 at 5:10pm

Dolores,

My lease addendum specifically states that there are to be no post production deductions, Ultra has improperly deducted several thousand dollars from our royalty checks to date and they will continue to do so as long as the well is producing and they are not stopped.  I would like to know how many other landowners are experiencing this same treatment

Permalink Reply by Dolores Chobert on September 4, 2014 at 7:28pm

well i know everyone here is ,because they were all complaining about it. they didn't take anything at first . then all of a sudden they started. Beats me . I figured if it was illegal , someone would've reported it by now. or at least did something about it. Now that Shell bought out Ultra interests here .\, who knows what will happen. I was wondering if Shell has to do another lease.

Permalink Reply by Deb Reynolds on August 16, 2014 at 12:05pm

thanks, this is the first I've heard of this. I remain stubbornly hopeful in Charleston Twp., Tioga Cty., PA

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