Can anyone explain this anomaly? (Hilcorp)

Hilcorp seems to easily swim against the current of negativity about the viability of the Northern Utica. They have wells in Mahoning County, Beaver County, and Mercer County. You can hit a few Mercer County wells from the Trumbull County line with a rock. There is no doubt that the further south you go, the better the fishing. But proven success in the Northern tier, should not, and can not be ignored either. They seem to be prospecting, producing, and succeeding in the Northern Utica.

Houston energy company gives out $100,000 bonuses to all employees

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Permalink Reply by Joseph-Ohio on December 4, 2015 at 12:43am

Sage59,

Do you know / can you advise us as to how Hillcorp's Lessors are being treated these days ? ?

Permalink Reply by Sage59 on December 4, 2015 at 1:11am

That I can't answer that Joseph. My only personal contact is a family member that lives near the middle of Poland, OH. He was suprised to receive a signing bonus for his small residential lot. Hilcorp went to a lot of trouble and cost to sign up he and many of his neighbors. There is a well near him, but I am not sure if his property is involved. I try not to pry, but next time I see him Maybe I'll try to feed him an extra beer. I had an old friend who used to say "Would you mind passing me another bottle of blabbermouth."

Permalink Reply by Joseph-Ohio on December 4, 2015 at 1:45am

Standing by.

Best of  luck to he and all of us.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 4, 2015 at 5:36am

Take a look at the Natural Gas Liquids map to see if they are drilling and helping themselves to NGLs without paying a royalty.

"Everyone else is doing it".

Permalink Reply by Ragnars Repo on December 4, 2015 at 7:22am
http://www.wsj.com/articles/carlyle-group-swings-to-loss-1446029792

Carlyle bought a 40% stake in Hilcorps holdings. They have also taken out a loan using the mineral assets as collateral. Perhaps the wiser among us could speculate as to the purpose of this move.
Mike MurphyPermalink Reply by Mike Murphy on December 5, 2015 at 1:46am

Hilcorp, founded in 1989, is one of the largest privately-held oil and natural gas exploration and production companies in the United States and is the largest oil producer in Louisiana. Headquartered in Houston, TX, Hilcorp has over 1,350 employees in multiple operating areas including the Gulf Coast of Texas and Louisiana, the Northeast United States, and Alaska's Cook Inlet and North Slope. HILCORP has many other areas it is involved in and them giving 100,000 dollar bonuses out does not say the northeastern area of Ohio is a good area .....if it was so good they be gobbling up every acre they could up there  why didn't they take over all of the BP acreage .........when will they drill a profitable well in the northeastern area ......they haven't so far .........they are making money but not in ohio......where is the proven success in the northern part of ohio just because they have drilled a few wells up there does not show success  

Permalink Reply by Bob Rock on December 5, 2015 at 8:06am
Gezz I sure like to be getting some of those royalty checks I hear my northern neighbors and friends are reciveing from them. I would say what you read on the pa. And Ohio dept of oil records isn't really telling you the truth. Like Joseph says jmopo! Ah never mind .
Permalink Reply by Bob Rock on December 5, 2015 at 8:08am
To Ron hale I would have to say no. There a honest upright company from everything I ever heard. Nothing bad yet.
Permalink Reply by Sage59 on December 5, 2015 at 1:10pm

Thanks for your input Bob. I hope you are on the receiving end of royalties when things get back on track again. I saw a lot of pipeline work going on in the Mercer, Beaver county area this year. I imagine that Hilcorp is planning on putting them to good use.

Mike, Hilcorp seems to be very smart and methodical. Also, they are obviously successful. How many companies even in the proven sweet areas of Ohio and PA can say the same today? By the way Mike, Hilcorp is in the Northern sweet spot according to the most recent studies. Their ongoing work and growth in the much maligned Northern Tier sure doesn't seem to be hurting them. By your rules, a smart company would pull out. They, I'm sorry to relay to you, have not stopped in our area. Also, by your rules, they should be leasing and acquiring acreage down south. Hilcorp is not doing that, though they have enough money to give employees $100,000.00 bonuses each. They are developing this Northern area. They continue to pull, and have available active permits. They are still actively working here. I know that they have more lucrative areas that are more maturely developed around the country, but, they are still here and producing. You do not do as well as they, and their employees have, by kicking a dead horse.

Mike. Concerning the BP acreage. I am involved in that deal. My opinion is that the Trumbull BP leases will expire, certainly not because I want them to, but because Trumbull is just more difficult to produce at this time. I think that Hilcorp is in a good position to methodically push west as their needs and technology develop. Common sense, which Hilcorp seems to have an abundance of, would dictate that you would cherry pick carefully as you go, not buy up a huge Chesapeake infested block(old clinton leases). Most of Mahoning and a lot of Trumbull County are in the northern reaches of the sweet spot. In these tough economic conditions, we are just not in the sweetest spot. The northern geology does not seem to have hurt Hilcorp, though maybe if they hadn't drilled here, the employees would have gotten $200,000.00 bonuses.

Permalink Reply by deer spotter on December 5, 2015 at 1:45pm

Mike: If the northern area is as bad as you say ( most is just from articles you pull of line ) why did Energy Transfer just lay sixty miles of 24" and 40 miles of 30" from Northern Buttler CO. ( Venango CO. line to Burgettstown PA. ) Liquids into the Sonoco line to Marcus Hook, Gas into the Rover Pipeline. All of us in the north will wait on the answer why a company that just spent 38 billon to buy Williams Partners would spend a few more billion on a pipeline were production is poor. Just to be clear this is north west PA.

Permalink Reply by Sage59 on December 5, 2015 at 4:34pm

Careful deer spotter, you are using real facts. Some people don't like that. Here is an interesting connection too. Hilcorp recorded an agreement with Pennant Midstream at the Trumbull County recorder's office  9/15/2015.

What's up with that if there is no future value here in the Northern Tier? By the way, Pennant Midstream and Three Rivers Midstream formed a joint venture Oct 5, 2015.

Three Rivers Midstream Joins Pennant Midstream JV

Quoted from the article --  "Three Rivers is a logical partner for Pennant," said Brett Stovern, Pennant’s president. "The company's extensive commercial and operations knowledge in the Appalachian Basin will further increase our leadership position over our Utica footprint. With strong processing, gathering and transport infrastructure in place, and the ability to significantly expand and leverage our asset position, we look forward to supporting further shale production in the Mahoning Valley."  That quote is two months old, not two years old when things were going well industrywide.

Mike, you always count out Mahoning County. Three Rivers, Pennant, and Hilcorp don't seem to. I'm in Trumbull county watching Mahoning, Lawrence, and Mercer Counties in particular. We are all in the sweet spot according to extensive studies. There are some serious companies spending serious money there. All in good time.

Among other things, Three Rivers Midstream signed a bunch of pipeline leases in Trumbull County a while back, and as the article states  "Three Rivers is a logical partner for Pennant," They recorded all of this activity in Trumbull county to make it official. Why would they bother to do that in Trumbull County? There's nothing of value here, right? Hmmmm----

Permalink Reply by Sage59 on December 5, 2015 at 5:21pm

P.S.   Mike. By the way. That Three Rivers pipeline is leased all the way up to --- dare I say it --- Ashtabula County. Curious. Why do these companies spend so much money just to turn around and waste it? I wish my job could be performed so unfocused and whimsically.

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