Replies to This Discussion

Permalink Reply by Charles Randolph on August 13, 2014 at 12:44pm

SO Shell unloads Venango, Lawrence, Butler acreage. Will Tioga & Potter be next ?

Permalink Reply by Jack Young on August 13, 2014 at 2:38pm

Not likely, but you can never be sure with a big company like Shell. This sale to Rex was a virtual give-away. Take out the value of the existing wells and production, and the acreage sold for only about $400 to 450/acre. And Rex has no cash to make the purchase either - they'll need to sell equity to raise the money required. Clearly Shell wasn't able to find any better financed buyer and wanted to get rid of that acreage pretty badly. Although they are clearly disappointed with the Marcellus in Tioga County, I don't think they're ready to sell out. Not until they get a better feel for what the Geneseo and Utica can produce in selected townships. And see where gas prices are headed.

Permalink Reply by Charles Randolph on August 16, 2014 at 3:19am

Now it appears even less likely. Good news for Tioga and Potter !! Thursday Shell announced they are acquiring a large chunk of acreage from Ultra in this area.

Permalink Reply by Charles Randolph on August 16, 2014 at 3:20am

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.”

Permalink Reply by Ann Ticopa on August 16, 2014 at 5:44am

Some of that likely is hyperbole, but Shell does seem to be holding on to its TC investment ... at least for now.  If one follows the DEP permits applied for and documents (e.g revised declarations) filed (Landex), they are tweaking sites last active ~2010.   And, they already have done a partial write-down.  

.

Permalink Reply by Charles Randolph on August 16, 2014 at 6:43am

 Ann, When was the last time you saw a close-to-the-vest company like Shell resort to hyperbole ? They divest themselves of Haynesville, Pinedale, and Western PA shale assets, while adding to their Tioga-Potter Utica Shale assets and you describe the news as hyperbole ?? Very strange response from you in my opinion.

Permalink Reply by Ann Ticopa on August 16, 2014 at 10:22am

I consider "The company said it has “completed a comprehensive evaluation of this highly attractive exploration area" ...” - in reference to TC Utica shale exploration - is an exaggeration.  The transaction itself is on track to become fact.  

It was common knowledge that Shell had a target amount of cash to raise by selling assets.  Why are you convinced that they wouldn't have sold their TC assets had there been a resonable offer?  Why didn't Shell buy Chesapeake's TC holdings when they had the chance?  Why hasn't Shell bought out Talisman?  Tenaska et al?  EQT?

Permalink Reply by buggs on August 18, 2014 at 1:18am

Some people like to stir the pot and believe they know things they do not just because they follow permit activity. I believe you are on the right track Charles in your thought process.

Permalink Reply by Ann Ticopa on August 18, 2014 at 1:53am

P-K-B

Permalink Reply by Jack Young on August 16, 2014 at 3:38pm

One thing that wasn't made public is that Shell and Ultra have been arguing over various issues related to their joint venture area in Tioga County for some time. Both parties probably would have given their share to the other for very little just to end the argument. So Ann does raise a valid point about the need not to get carried away by this transaction and assume it means that happy days are here again. It's a positive, no question, but we have to keep things in perspective.

Permalink Reply by Jim Jones on August 18, 2014 at 9:38am

 

Josie, Confer Lane located off Marsh Creek Rd on the Rt. 6 side

of Shippen Twp.  Is the dividing line between Ultra and East/

which is now Shell.  Confer Lane was leased four years ago by

East. The covered wagon parcel located on Marsh Creek Rd is

 leased by Ultra also four years ago.  There has not been a pipeline or unit established as of yet for a well pad in this section of Marsh Creek Rd. Next closest well pad on Marsh Creek Rd is the Walker Pad (Shell owned) located near the Shippen Twp Bld.

Permalink Reply by NightHawk®™ on August 18, 2014 at 4:17pm

Any word on possible happenings in Charleston Township?

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page