What's going on in your area?? any info???

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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Replies to This Discussion

Permalink Reply by Jack Young on February 25, 2019 at 3:47pm

Hedging is something you do after you've already locked in the terms of your gas sales contracts. Futures contracts were designed to reduce price volatility and that's when their use deserves the term hedging, as in "hedging your bets". The same tools used for hedging can also be used to speculate on the price of gas, of course. Most hedges and hedge funds these days aren't strictly hedging. And a royalty owner shouldn't have their payments rise and fall with the outcome of a speculative hedge. That's the operator's gamble.

I prefer to see the prices paid to royalty holders stay close to the monthly NYMEX close plus or minus the basis for the production area. But before anyone asks for more details, there's no way to be sure what any operator is doing with their gas marketing just by looking at the prices on your statement. Gas marketing is much more complex than it was in the old days, and it's not easy for an outsider to backwards engineer a price or a strategy.

Permalink Reply by Bullfrex on February 26, 2019 at 1:34am

Thanks Jack....I now see the difference....good to know.

Permalink Reply by Ann Ticopa on March 4, 2019 at 2:16am

Death Lawsuit - 2/26/19

"A lawsuit by the widow of a worker who died of asphyxiation on a well pad owned by SWEPI LP, a subsidiary of Royal Dutch Shell, will go forward as a federal judge declined to dismiss it. ... Marc Jones, an employee of Deep Well Services, died on a well pad in Middlebury Center, Pa., that was under the control of the defendant'
https://news.bloombergenvironment.com/safety/shell-and-subsidiary-m...

Permalink Reply by paleface on March 8, 2019 at 8:16am
Permalink Reply by NightHawk®™ on March 16, 2019 at 2:05am

Could someone tell me who the Shell contact is these days in Tioga County, and how they might be contacted, please?

Permalink Reply by paleface on March 16, 2019 at 2:27am
Permalink Reply by william Allen. Ladd on March 29, 2019 at 4:08am

Does anyone have any information about additional wells being drilled in Westfield Township in the next few months?

Early last fall it was said that a couple more wells were scheduled sometime during the 2019 summer of fall months.

Permalink Reply by Jack Young on March 29, 2019 at 8:08am

There's nothing new on eFACTS, and last time I talked to Eclipse they were essentially on hold for future development. Hopefully they'll try one of the Abplanalp wells before the permits expire later this year, but those can easily be renewed. Looks like a very slow 2019 for our part of Tioga County.

Permalink Reply by paleface on March 29, 2019 at 4:07pm
Permalink Reply by Jack Young on March 30, 2019 at 12:04pm

Yes - it's Tilden Marcellus, as Ann noted below. They're the same folks who bought East's old Texas Creek play a while back under the name Rockdale Marcellus. I talked to them a couple weeks ago, and I think they'll do a good job with the assets they acquired. I wouldn't expect much additional drilling in the near future, however. What they got is a slimmed down version of Ultra's original Marshlands play, as some leases had expired. But there's plenty of acreage HBP by mediocre Marcellus wells, so they can wait. And hopefully generate some decent cash flow in the mean time.  

Permalink Reply by Jack Young on March 30, 2019 at 2:13pm

Much less. The wells are older and the deep potential very speculative. It was one of those deals that was a good call for each company, but for different reasons. This appeared to be a dead-end for Shell, but should give Tilden decent cash flow (since their operating costs will be lower than Shell's) and some possible long-term upside in the Utica.

Permalink Reply by william Allen. Ladd on March 31, 2019 at 1:04am

Thanks Jack.  Aside from the benefits from the Painter wells,  Broughton hollow road has a much better surface to drive on from RTE 49 to the Painter well pad access anyway.  Other township roads, not so much!

Granddad Ladd 

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