Anadarko defines its core Utica acreage

Anadarko assigns all its non core acreage and all wells in the Utica to Artex Energy Group LLC except a small area in the SE.

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Permalink Reply by Glenn C. Keith on November 13, 2014 at 7:27am

I would think $2500 per acre and 14% would be a more appropriate deal. It certainly was three years ago.

Permalink Reply by James Vanderink on November 13, 2014 at 8:43am
Wow what a deal! Not! Artex would not just get the Utica but every other formation. What does Artex want with the Utica?
Permalink Reply by Carolyn on November 13, 2014 at 11:29am
They have less than 2 years on the leases that were signed in 2011 or they have to pay $3500 an acre to extend them for an additional 3 years. Do you think they will extend them or let them go?
Permalink Reply by jonathan M. on November 13, 2014 at 2:26pm
An option in a lease ONLY benefits the oil and gas company. In the event the prices in area go down then they let the lease expire then offer a new price to lease the acreage. On the flip side if prices have gone up in the area then they can lock up the lease at the previously negotiated price. Again it only benefits the oil company. Landowners should never sign a lease that has an option to renew.
Permalink Reply by James Vanderink on November 13, 2014 at 2:54pm
Carolyn, two years is a long time in the energy o/g business. Consider the ADK well drilled in Sharon Twsp back in 2011. If it was drilled today the results would be much better. You are sittin' pretty there. Be patient.
J
Permalink Reply by searcherone on November 16, 2014 at 1:08am

Jonathan, some landowners signed leases with Eclipse to renew which includes a stated % of increase per acre for the renewal.  So perhaps one can't say never sign a lease with option to renew.  

Permalink Reply by jonathan M. on November 16, 2014 at 2:55am
And they will only honor that option of the market dictates the price. If the option called for a 50% increase of the original bonus but the current price in the area is
More than double the original bonus does that sound like a good deal? If the market has dropped in the area than the company won't excercise their option. Again it's only advantageous to the oil company to sign a lease with an option.
Permalink Reply by Carolyn on November 13, 2014 at 3:38pm
Jonathan, can you imagine that much acreage coming available in the utica and an offer for $1500 an acre and 12.5%? Do you think landowners would lease for that?
Permalink Reply by jonathan M. on November 13, 2014 at 3:45pm
In some parts of the utica landowners wish that offer was around. Some areas thought to be in play a couple years ago have now been condemned and abandoned.. While I think Sharon township should be good it certainly isn't a slam dunk. Specifically if you're in the western portion of the township. If you're on western side the acreage would be in line with pdc Neil well which has been big disappointment.
Permalink Reply by James Vanderink on November 14, 2014 at 1:37am
Why is Artex trying to lease the Utica? Their partner Anadarko is gone.
Permalink Reply by James Vanderink on November 14, 2014 at 6:57am

I say this makes it official. Welcome to the Utica Shale Artex.

Permalink Reply by Darren McCauley on November 15, 2014 at 5:13pm

So does this mean the will be drilling horizontal  wells?

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