Some Five year Leases are almost up,

Some Five year leases are almost over. Will Hilcorp and other Oil and Gas companys pay to extend these Leases, or will they just let them run out?

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Mike MurphyPermalink Reply by Mike Murphy on July 12, 2015 at 1:42pm

I been told by southwestern that they will be releasing on mine in marshall county west Virginia that they bought off CHK.......I doubt that the companies up in northern ohio like Hillcorp and Halcon and BP will be doing much in remewing their leases because its dead up there they probably will let then expire and maybe come back with lower bonus  offers and smaller royalties after they run out

Mike MurphyPermalink Reply by Mike Murphy on July 12, 2015 at 2:25pm

or not  evenrelease at this time at all  Ashtabula has one well permitted by BEUSA   that has never been drilled Trubull and Mahoning have 12 wells between them with truly poor results  Columbiana south has pretty much good results  and over in PA has alotta proven areas  and  most of that is setting on a triple play THE Upper devonian the Marcellus and the Utica so companies don't want to have to release by formation each separately if your below the Columbiana northern line you will be renewed  but up north of there it is pretty iffy   

Permalink Reply by Sage59 on July 12, 2015 at 4:25pm

Mike, maybe you are getting a little too exuberant in your negative analysis. I think that Hilcorp is definitely not dead up here, and has had some very good wells up this way in Mercer and Mahoning county. They are quietly grinding away, and I have heard no mention of them turning tail on the area. There is also pipeline work going on near those wells. That is a very good indicator of an area's value. Any lease extending they do will be driven by their tested knowledge of the area, and simple economics. I agree that they will use tactics to push bonuses and royalties down. That is what these E&P companies do. It will be up to the landowners to weigh their offers.  Halcon's Kibler well in Trumbull county is a very good well. I think that Halcon's financial problems run deeper than their results up this way, though more Kibler-like results would have helped them for sure. Companies are going to take as much advantage of landowners as is both humanly and inhumanly possible. You may not be totally wrong in your analysis, but you sure seem to enjoy helping the landmen do their job. The perfect scenario is where we start paying them to drill. From what I've been reading, Chesapeake is nearing perfection.

Permalink Reply by Joseph-Ohio on July 12, 2015 at 4:57pm
Sage59,

Right now at this moment in time with the OPEC and SA thing going on flooding the overall market with their production as well as no significant infrastructure improvements that I know or have heard of in the north (translating into not enough takeaway capacity) as well as not enough customers / and therefore no place to take it to; I'm reading that there seems to be a glut of oil and natural gas as a result. For all of those reasons I interpret E & Ps probably see no need for additional production.

That could change fast and I think it will and I hope sooner than later.

I think we need to develop more uses for natural gas here at home and stop concerning ourselves with protecting the OPEC / SA market.

Serve ourselves.

Just my read / opinion.
Mike MurphyPermalink Reply by Mike Murphy on July 13, 2015 at 12:46am

there not building infrastructure up north because there is not enough production now or in the future for companies to spend money on pipelines and processing plants  markwest has 28 billion dollars in projects in ohio none in the northern teir every thing is Columbiana and south of there.... that is of any count  that is now and that was before the big drop in oil and natural gas prices  of one year ago  and development of more uses of gas are happening but that is a slow process   the o/g still have over 25 rigs running in ohio and are still putting wells into production but not up north

Permalink Reply by Joseph-Ohio on July 13, 2015 at 12:51am
They need to crank up the volume / step up the tempo.

More domestic Natural Gas use is needed.

Government needs to get on the 'Natural Gas Domestic Use' bus, not stand in it's way.

More of everything Natural Gas domestically and more service and development of foreign markets.

It's like the O & G Industry is all dressed with no place to go.

JMHO
Permalink Reply by Joseph-Ohio on July 13, 2015 at 1:08am
Mike MurphyPermalink Reply by Mike Murphy on July 13, 2015 at 1:36am

Joseph what is kicking in .....u totally lost me on this one

Permalink Reply by Joseph-Ohio on July 13, 2015 at 1:39am
The 'energy glut'.

Abject neglect of the domestic economy by our government.

It doesn't appear to me that our government is smart enough to recognize what a great blessing our natural resorces and technology are providing us.

It appears to me our government believes their job is to build hurdles / stand in the way and waste valuable time protecting the world / the world's energy - even to the extent of war making instead.

Did that clear it up ?

JMHO
Permalink Reply by Joseph-Ohio on July 13, 2015 at 1:11am

Need more customers to purchase the abundant Natural Gas resources both domestic and foreign - first domestic.

More domestic Natural Gas power generation.

More domestic Natural Gas transportation - freight hauling (waterways, airways, rail, truck, automobile, buses) which all await infrastructure (fueling stations / innovative fuel trains for conversions, conversion kits, perhaps government subsidy to make it happen).

More foreign markets and shipping terminals.

That all takes commitment / leadership / a grand plan and government cooperation to see to making it happen.

Ought to reserve gasoline and diesel for the military and very small engines in the private sector.

That would (begin to) sound like a plan to me.

T. Boone Pickens has it right.

We ought to draft him to run for Pres.

Permalink Reply by Trapper on July 12, 2015 at 3:22pm
Mike, what is going on in Southern Lawrence County PA? We are 3 or 4 miles from the Patterson pad and some neighbors are up for renewal in Oct.2015. As of yet,they have not been contacted.....
Mike MurphyPermalink Reply by Mike Murphy on July 12, 2015 at 4:07pm

THEY NEED TO CONTACT THEIR LEASER THATS WHY THEY INVENTED THE TELEPHONE ......NEVER HURTS TO ASK AND SEE WHAT THEY SAY THATS HOW I GOT MY ANSWER TO MY LEASE THATS UP IN DEC 2015

sorry caplock was on

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