Just curious...

     I am in Liberty township and a few months ago got an offer to buy my royalties for 1500 to 1800 per acre, but they would do a more in-depth look if I was serious which "mite change the numbers" slightly....even tho I am not drilled or receiving any royalties ..talked to a landsman rite b4 I contacted them and he advised caution as there will be "significant" activity in my area in the "near future"....how about it, anybody else get an offer or hear anything or see any activity here in Tioga Co. ?

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I was under the impression that soon after the Painter well was finished by Travis Peake that Travis would move directly to Ab.

 Oh well,  plans change frequently.  But I try to keep up as best as I can with them.

Granddad Ladd

No I do not believe there was ever a drilling unit moved in that pad.  Seem to recall that Travis workers were called to Texas  to open up another promising area. Not  sure about this however.

Granddad Ladd

Ran out of money?  Iirc, the $$ they had wouldn't go very far drilling Utica wells.

I am almost willing to bet that that Painter own both properties.

Granddad Ladd

I was referring to Encap's $250M investment in Travis Peak.

Like I said,  drilling plans can change at a moments notice.  And of course the landowners will not be notified promptly.

 I wonder how many of them borrowed money in anticipation or using leasing bonus or possible royalty payment  to make payments on the borrowed money?

Granddad Ladd

William,

Hopefully no one borrowed against future gas monies. We have advised against that practice to anyone and everyone who will listen. This gas money is a windfall, but the amount and duration remains an unknown for each and every month until received. The price of gas is a moving target, and production numbers and the decline curve can not be forecast for a year or more after production begins.....if even then.

No, pay your estimated taxes like clockwork, and what is left over can be used to improve your life, but only AFTER you have received it. The royalty will fluctuate wildly and after five years or less, will be a drop in the bucket.

Hopefully everyone read your posting Bullfrex.   But you know how it is. Far too many folks want much more then they can afford.

My own thought  is this.  If I cannot pay for it in full,  then I don't really need it!   I know folks that over extended themselves for years. And then something happened. So today they are looking over their shoulders to see if the sheriff is coming.

A good  posting and well written by you Bullfrex.  Maybe this posting will save one of the land owners a very harsh time ahead!

Granddad Ladd

What is the resolution of units which are "abandoned" after a single well is drilled? Some of the landowners' gas would have been extracted and some would be untouched.

One unit I'm thinking of, was surprised to see one landowner released ... ~ 300 acres released that had been held by 30 in the unit. Assuming that natural gas remains a primary fuel, at some point supply will shrink and it will pay to drill these "abandoned" units. How is this going to get sorted out?

The irony is that a justification for forced pooling is conservation of the resource. That is, the non-participating landowners (in a unit) gas would be wasted. Shouldn't the same reasoning apply to operators?

I took the release as confirming that the area is now way down SWEPI's priority list. 

Tenaska is one of the companies that - for relatively short periods - were active in the Covington area.  In 2013 Tenaska teamed up with UGI for Marcellus development

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