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Activity in Millwood Township (Guernsey)



Started November 29, 2013 at 10:53 am by @Philip Brutz in Guernsey County, OH

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Philip Brutz
11/29/13 10:53:09AM
@philip-brutz

Information about drilling activity, pipelines, etc. in Millwood Township.

bo  boboski
01/29/16 04:26:31AM @bo-boboski:

Nice to see a big rig back in Guernsey county. The Purple Hayes. That one should be there a while, what is that lateral,about 4 miles long? Be interesting. May be another soon,The Neff,PDC. on Salem rd. Poor Putney Ridge rd. That paved road is now pretty much a gravel road.


sherry2
01/29/16 06:02:34PM @sherry2:

Does anyone know where to find a site on who's in the purple Hayes unit? I figure we will be,but not sure. Thanks


Laura10
01/29/16 07:06:56PM @laura10:
http://apps.ohiodnr.gov/mineral/oil/MRMImages/1/70/375555.pdfhere is the permit. Scroll through to the royalty owners list
bo  boboski
01/29/16 08:37:01PM @bo-boboski:

I would really like an explanation for just what it is Eclipse is trying to accomplish at the 5 mile TD. wellbore; Purple Hayes well. Some say its a test well, others say it will be a producing well that hopefully will triple,or more,the production #s of most of the other wells in the area. Will it have 100 frack stages? Is it gonna be the longest lateral ever in Ohio/PA/WV.? Will it produce for a longer period of time than a 7000Ft lateral,or will it peter out in the same timeframe?What do they expectthe cost to be todrill&complete it? Some say,if its a success, it'll be a "game changer". Thinking is,it'll be an economical way to get those hydrocarbons outta the ground,compared to the way they've been doing it thus far. It makes sense,If they can drill just one well,instead of 3 or 4,and get the same production #s, then,Yea, game changer. I'm sure they have the numbers crunched,and have a good idea of the end result, but we will probably have to wait,till its all over,and the well gets put into production for us to find out. Maybe its their last ditch effort to stay afloat,or look desirable to prospecting buyers?


WranglerRouser
01/29/16 11:23:36PM @wranglerrouser:

What is the horizontal lateral length of the Purple Hayes well? I can't seem to locate the information anywhere.


bo  boboski
01/30/16 07:08:06AM @bo-boboski:

Total depth...26586 ft. I think 7000ft. of that would be close estimate to the vertical part.only 364 acre unit because it's not very wide. Permit is for a producing well,NOT a test well. Although it is a test,in a way,or experiment,to make the well the most economical as possible.


John57
01/30/16 09:40:51AM @john57:
Any idea on how long it will take to complete such a well?What is the typical completion cycle?
bo  boboski
01/30/16 05:00:14PM @bo-boboski:

From what I read, 10 days to drill,10 days to frack, 10 days to complete,that's after a 60 day rest period. There can be days,or weeks in between each process,so on normal length wells,it's been about 3 months,minimum. With this well,being 3 times longer than normal, you may be looking at 6 months. If you're wondering about royalties; a year. provided they don't figure out a way not to pay them!


Jeffrey Stoll
01/30/16 05:43:55PM @jeffrey-stoll:
I was told that it will be better for land owners. If you have 50'acres in a 365 acre unit with 20000lateral that is producing the same as 3 wells that are 7000!ft lateral in a 600 acre unit, you have a bigger piece of the same pie
bo  boboski
01/30/16 07:27:02PM @bo-boboski:

Ummm, have to get the thinking cap,or calculator out on that one.


Jeffrey Stoll
02/01/16 12:08:58PM @jeffrey-stoll:

If a 20,000 ft lateral produces the same amount as 3 -7,000 ft laterals, and the 20,000 lateral is in a unit that is 365 acres and the 3 - 7,000 ft laterals are in a 600 acre unit, your 50 acres gets credited with 13.69% of the production out of 365 acres and only 8.33% of the 600 acres....follow?


bo  boboski
02/01/16 04:26:13PM @bo-boboski:

Looks like,if it works as planned, it will be a good thing for the producer AND the landowner.


WranglerRouser
02/02/16 02:36:42PM @wranglerrouser:

OK... but a 600 acre unit would produce nearly double the amount of oil and gas as the 365 acre unit would; so proportionally your 13.69% would be worth basically the same, in dollars and cents, as 8.33% of 600 acres. It's basically a wash


John47
02/03/16 07:27:00AM @john47:

Your assumption is that double the acreage will produce double the gas, yet they have the same amountof lateral length. My question would be, can a single well with a 20,000 lateral output as much as 3 wells with 7,000 laterals a day or will it produce the same as a single well over a longer period of time?


Jeffrey Stoll
02/03/16 01:42:06PM @jeffrey-stoll:

Wrangler, I believe Eclipse thinks that what John said is going to turn out to be correct. I think they believe a 20,000 ft lateral will produce the same as 3- 6,700 ft laterals.I also believe that it can't produce for as long since you can't have as much gas in a 365 acre unit as a 600 acre unit if the thickness of the producing zone, porosity and permeability are all the same.I would rather get more money now for a lesser number of years than less money now for a greater number of years. Time value of money


bo  boboski
02/03/16 06:46:26PM @bo-boboski:

My take is; Eclipse doesn't give a rats ass about how much more,or less the royalties for the landowners will amount to on this 5 mile long wellbore.They are only concerned about how much more $$$ they will make on it, compared to a 7000 ft. lateral. It's gotta be less expensive to drill one 20,000 ft. lateral than 3-- 7000ft.ones. Set up the rig once,drill one verticle.Frack it once,not 3 times. Just Sayin.


Fast
02/04/16 07:10:02AM @fast:
Good morning Bo,Nicely stated. Not sure but I thought I heard some landowners had to sign off on this unit. However,as the stories are posted frequently about non payment of royalties, people seems to allow it to happen!! If I were a landowner that would not happen. I'd make them take me to court to use my land.
bo  boboski
02/16/16 04:44:25PM @bo-boboski:

I'll betcha they'll have the Purple Hayes drilled by the end of the week. I heard from a worker on that pad that they only had 4000' left to go about a week ago. Also heard that when they take the rig down,it'll stay down for a while. ALL HEARSAY, but who know,some people may actually know what they're talking about.


sherry2
02/16/16 08:59:55PM @sherry2:

Glad they will be done drilling the purple Hayes well. I'm tired of hearing it!! ,only a 1/2 mile from my front door.


bo  boboski
02/17/16 04:19:50AM @bo-boboski:

Sherry, don't get too glad. After they take out the rig,they will frack it. Being 26,000ft. well, it will take them longer than normal to frack. Instead of the normal 25 frack stages,it may take over a 100 on this one. I.ve noticed that the fracking makes even more noise! Lots of sand will be needed trucked in too. Sorry,but I hope you are in the unit,the royalties will ease the pain.


evan
02/17/16 11:45:28AM @evan:
They are laying waterline across me this week to get to frack it so it won't be to long now before they start. There saying late Feb. to start
sherry2
02/17/16 06:14:38PM @sherry2:

Guess I didn't realize that. I just pray our well will be ok. It looks like one of the lines goes underneath it. I know it's alot further down than our 200 ft well, but still worries me , because of all the trouble we've had getting water.


WranglerRouser
02/17/16 07:43:24PM @wranglerrouser:

Thanks for posting this Philip!


Bobbie Farmer
02/22/16 04:27:38PM @bobbie-farmer:

The purple Hays rigs is gone.


GW32
02/22/16 04:44:43PM @gw32:
think the rig issetting up at the scott pad ,, or maybe the yost .??
Bobbie Farmer
02/22/16 04:57:48PM @bobbie-farmer:

Am hoping it the yost then all my land will be Used ...


John57
02/22/16 05:36:53PM @john57:
The Purple Hayes took halfof the Yost well unit if you lookat the plats. Maybe they are goingto come back the other directionusing part of the Scott and otherhalf of Yost unit.
David Allen Lilly
02/23/16 10:23:49AM @david-allen-lilly:

I have been watching what I assume are rig pieces from the Purple Hayes going by the house for some destination unknown.

I am wondering if anyone knows where they are taking it, it doesn't seem like they are gone for very long before they come back by for the next load.

I saw a rig ready to go up on the north side of I-70 in Belmont county driving by on Saturday headed to Wheeling.

Hopefully the bore went well but I would think the harder part will be recovery along the 20'000 foot leg.

And yes, the unit for the Purple Hayes did take some of either or both the Scott and the Yost units. Looking at the ODNR map you cannot tell how the units are arranged.


GW32
02/23/16 10:28:19AM @gw32:
they are setting up over at scott pad.. rumor has they r doing all 3 units ? scott, yost, and finneram
Bobbie Farmer
02/23/16 12:11:00PM @bobbie-farmer:

Thing have changed for the mapping of the Yost ,if anyone get the new maps please post.


Noble County Land Owner
02/23/16 12:29:57PM @noble-county-land-owner:

Can you explain how it "takes" some Scott, Yost well units?

Are these properties already unitized?


John47
02/23/16 12:52:54PM @john47:

If you look at the Purple Hayes and Yost B 8H plat maps, the Purple Hayes takes most of what was designated for the Yost well and then extended past the Yost to several of the Scott bottom holes. So I guess it didn't "take" units, Eclipse just did some shuffling ofproperties to making up the Purple Hayes. Have not seen an updated plat for the Yost.


Bobbie Farmer
02/23/16 01:17:23PM @bobbie-farmer:

OK Philip I had all my land in the yost now they used 5 half in the purple Hays so my 5 half now would be in the yost b 8H so they would have to make a new plate map ?..I only have 11 .034


Philip Brutz
02/23/16 03:12:39PM @philip-brutz:

The Purple Hayes lateral seems to be design to hold as much acreage as possible. My guess is that whenever in the future Eclipse decides that it is profitable to drill Yost, they will issue a new plat map.


Philip Brutz
02/23/16 03:18:12PM @philip-brutz:

Scott 7H has not been drilled yet. So Eclipse could still change the units.


Noble County Land Owner
02/23/16 03:47:05PM @noble-county-land-owner:

Ah... makes sense. Was thinking all were unitized some way already.

I appreciate the clarification.


Bobbie Farmer
02/23/16 06:55:30PM @bobbie-farmer:

Thanks will wait and see ,what they do.


John47
03/01/16 07:11:13AM @john47:

Any updates?


Bobbie Farmer
03/07/16 03:46:54PM @bobbie-farmer:

Looks like they're putting up the platform now on Scott or Yost well .No rig so far.


John57
03/07/16 05:52:45PM @john57:
They submitted completion formfor Yost 8H stating it wasredrawn. Haven't looked atpaperwork for Scott wells. BeNice if they were working on theYost, that would run parallelto the Purple Hayes and pickup the rest of my acreage.
Bobbie Farmer
03/07/16 06:26:00PM @bobbie-farmer:

Could you post new one for Yost well half my acreage is in it thanks.


John57
03/07/16 07:02:33PM @john57:
They haven't placed a new platmap for the Yost well on theODNR site as of today. As soonAs I see something I will letyou know. Thanks for any updatesAs I am not local.
Bobbie Farmer
03/11/16 02:22:16PM @bobbie-farmer:
did anybody else hear that explosion off of grape Hollow I hope everything's okay big plume of black smoke and then that was all and plenty of rescue squads.
Bobbie Farmer
03/11/16 02:35:36PM @bobbie-farmer:

Neighbor just said that everything's fine.


bo  boboski
03/11/16 08:49:25PM @bo-boboski:

I seen the black smoke, and seen a fire engine truck heading towards Salesville out Rt. 265. Was it at a well site,or at the compressor station?


David Allen Lilly
03/11/16 09:31:33PM @david-allen-lilly:

It was the Eclipse gathering facility on Grapehollow.


sherry2
03/11/16 09:38:54PM @sherry2:

Yep, scared me. I was coming home from picking up my grandaughter up. Then tried to come up grape hollow, and they stopped me,telling me I couldn't go up the road. So, I went clear around.


David Allen Lilly
03/12/16 09:20:50AM @david-allen-lilly:

There seemed to be quite a long delay between the explosion and the arrival of rescue workers. I don't know how no one was hurt, the explosion was very loud and the flames looked to be very intense. I went up there within 7 or 8 minutes of the explosion and thee was an Eclipse guy on his cell phone who told me everyone was okay but I didn't see anyone else around. I hope that there was truly no one hurt there, it looked and sounded very bad.


David Allen Lilly
03/12/16 09:58:49AM @david-allen-lilly:

This morning is the first time I have noticed what I believe to be the noise created by the fracking of the Purple Hayes well, I am wondering if that could be verified by anyone.

The HD McClain pad seems to be moving towards completion although the pipeline work to connect it to the Oxford road lines has barely begun, at least on my side of 513 as of earlier this week.

I met one of the guys on the site, KT, who is a great guy, very smart. I learned from him that the pipeline is scheduled to be in service in June. I kind of doubt they will get it done that quickly but I could very well be wrong.

I am in no hurry, n fact I would prefer that they wait a year as I believe prices will yo-yo but generally stick to a more upward pricing movement. I would much rather wait for $60 a barrel oil and a higher anticipated natural gas price. Unfortunately we are at the mercy of the producer and they don't consider our wishes, nor should they. If anyone has good information contrary to my observations I am eager to see it, we are all in this together.


bo  boboski
03/12/16 10:28:19AM @bo-boboski:

Thx for the news. Hopefully,we'll read about it the Daily Jeff,then again,maybe not. A lot of things happen in this county that you have to read about in the Wheeling,or Zanesville news.


David Allen Lilly
03/12/16 12:58:50PM @david-allen-lilly:

I forgot to add this morning that when I went to check on the explosion there was fracking equipment parked on the Fritz pad, maybe they are going to frack that one and then go do the Hayes. If I get a chance I will go check on them again and see what is happening.

I have seen a few trucks hauling fracking sand go by but not nearly as many as I have seen previously that are necessary for fracking.


bo  boboski
03/12/16 03:31:14PM @bo-boboski:

What company is doing the fracking?


bo  boboski
03/12/16 06:11:27PM @bo-boboski:

The explosion at Eclipse's site injured one man.He was sent by helicopter to Akron burn unit. Friday. Coshocton Tribune said it was at a fracking site. Marcellus Drilling News reported it also.


Bobbie Farmer
03/12/16 06:31:37PM @bobbie-farmer:

Then why they say everyone was fine and take so long to get there?.


Fast
03/12/16 06:42:28PM @fast:
My husband said it was across the street from usWhich would be Hayes unit. He said it was loud. So was it the Hayes unit or the gathering facility ?
bo  boboski
03/12/16 07:40:58PM @bo-boboski:

Eclipse didn't,report it. The not-so-local news casts did. The guy up at the gathering facility probably didn't want anyoneto be scared. The Tribune said it was an Ecllpse fracking site,which would be the Hayes. Maybe the moved some of the fracking trucks up to the Fritz for safety.


Fast
03/12/16 09:10:26PM @fast:
Thank Bo for the FYI. My husband said it was a huge explosion and he would be surprised if someone didn't get hurt. I hope the guy transported will be ok. Prayers for him & his family.
bo  boboski
03/13/16 07:21:05AM @bo-boboski:

Got the Daily Jeffersonian this morning ,hoping to read more about the explosion/fire/man burned incident at the Salesville well fire. ZILCH! NADA! Absolutely Nothing about it. PATHETIC!


Bobbie Farmer
03/13/16 08:05:37AM @bobbie-farmer:

Thanks for the update.i hope and pray that he will be Ok.


Fast
03/13/16 08:35:28AM @fast:
Not surprised. This is stuff they want to keep private. Few years back there was an incident at the Pora unit. I called eclipse because it freaked me out being too close to our property. They called me back and assured me fracking was safe and blah, blah, blah. Of course this was within a few months of a meeting with them... Where I questioned several times about the safety issues related to drilling.
bo  boboski
03/13/16 08:57:09AM @bo-boboski:

A loud explosion,fire,a huge plume of black smoke ,fire dept.sent out,emt units,helicopter taking a man to Akrons burn unit,and we have to read about it in the Coshocton Tribune? I mean,Really? Who was the injured man? Was he local? Come On, man, Jeffersonian.


Laura10
03/13/16 09:22:24AM @laura10:
Volunteer fireman told me it was a semi truck that caught fire.
bo  boboski
03/13/16 10:21:42AM @bo-boboski:

maybe it was e driver of that trk that got burned?


Laura10
03/13/16 10:23:36AM @laura10:
Yes that is what I understand.
sherry2
03/13/16 11:11:03AM @sherry2:

Yes David it is very loud! Had the Windows open and could really hear it. Just glad that the vibrations have stopped!!


sherry2
03/13/16 11:12:23AM @sherry2:

They are Halliburton trucks


Harry E. Rose
03/13/16 04:22:03PM @harry-e-rose:
What was in the truck?
bo  boboski
03/13/16 05:30:26PM @bo-boboski:

really! Do trucks explode? or did the explosion burn the truck?


David Allen Lilly
03/14/16 05:31:19AM @david-allen-lilly:

I was at a friends home on McBurney when the explosion occurred and drove straight to the gathering facility on Grape Hollow because I could see the thick black plumes of smoke easily before I got to Putney.

When I got up there I saw a white pickup blocking Grapehollow road with a guy wearing an Eclipse hardhat sitting in it and dialing his cell phone. I looked down at the fire and asked if anyone had gotten hurt and he told me "no".

I was standing there when he called his boss, I had thought he was calling 911 but I heard him tell the person on the other end that is was one of those trailers that they use to "vac" something that caught fire.

If an ambulance came I didn't see it among the Q.C.V.F.D. vehicles that went by my house about 30 minutes after the actual explosion, there is no way I would have missed one.

I was so surprised by the delay that I wondered why the fire and rescue guys took so long getting to the scene, unless they were not toned right away by the facility. It was definitely at the gathering facility on Grapehollow Rd., down over the hill and not up top where the trucks load the liquid stuff. Hard to tell what was burning but there must have been something highly flammable for the fire to last like it did.


David Allen Lilly
03/14/16 05:36:54AM @david-allen-lilly:

I did not see a helicopter or hear one at the Grapehollow fire/explosion, I don't know how they would have snuck one in and out without me seeing it or hearing it.

Something about this story does not seem right, I was there within a few minutes of the explosion and came straight home afterwards, I don't live that far from the site.


David Allen Lilly
03/14/16 05:44:20AM @david-allen-lilly:

The must be hauling sand for fracking the Purple Hayes up from 265, I have only seen a few of those trucks go by the house and they are definitely fracking that well.

Last week I saw a convoy of Halliburton trucks go by the house and I anticipated they were going to that site but when I went to check on the explosion I saw them sitting on the Fritz site.

A friend of mine told me that there had been a big bright light shining on the Fritz but the trucks that I saw go by look like they are just parked there for storage and not set up for fracking.

Maybe Eclipse is going to frack on the Fritz after they do the Purple Hayes.

It seems that they did not get all of the wells fracked or otherwise set up for production on the Fritz but I cannot be totally sure my memory is accurate on that.

There also is ever increasing pipeline traffic coming and going down to the HD Mclain site although it has rained quite a bit in the last 24 hours or so and that might slow what already looked like a very muddy dig.


Jeffrey Stoll
03/14/16 08:45:10AM @jeffrey-stoll:

All the wells have been fracked on the fritz pad. I wonder if Eclipse has the right to use my well pad (Fritz) as a parking lot free of charge?


Fast
03/14/16 09:04:22AM @fast:
sometimes they life flight people after they are transported to the local hospital. Might by why you didn't hear a helicopter.
David Allen Lilly
03/14/16 09:04:33AM @david-allen-lilly:

Thank you for the correction, you are probably right about the storage thing. I wonder if this is what is being done with the rig down on the Scott or Terry pad, last time I was down there it had been there a week or more, the base was set up but the tower/derrick portion was not up.


Jeffrey Stoll
03/14/16 11:30:56AM @jeffrey-stoll:

I have been told they will be moving back to Monroe after P Hayes before coming back to Millwood( after they hit the magic number for oil prices)


Jeffrey Stoll
03/28/16 03:19:44PM @jeffrey-stoll:

Nobody talking about the checks from Eclipse this month??? Anybody hear why they turned off the spigot? Don't know how they can pay their bills with no revenue. Any other units besides Fritz get shut down from production?


bo  boboski
03/28/16 05:37:45PM @bo-boboski:

I heard the Frank Miller was no longer producing. No proof.


Fast
03/28/16 05:41:33PM @fast:
No production as in the well run dry? That one I don't believe. If they shut it down due to prices they need to tell us.
Laura10
03/30/16 07:34:02AM @laura10:
I noticed on ODNR county engineers report, a permit to revise the Purple Hayes unit. does anyone know anything about this? thanks in advance.
David Allen Lilly
03/30/16 07:41:00AM @david-allen-lilly:

It would be of extreme interest to hear more about the notion that Eclipse has either shut down production or shut off the royalty checks.

Can anyone confirm anything ?


David Allen Lilly
03/30/16 07:43:37AM @david-allen-lilly:

Can you link me to whatever you saw ?


Laura10
03/30/16 07:55:18AM @laura10:
No link wouldn't work The permit was dated 3-7-2016 on county engineers for guernsey county.
Jeffrey Stoll
03/30/16 08:53:33AM @jeffrey-stoll:

There are other units nearby that also limited production to almost nothing. Don't want to say which one as the person that is in the unit told me but did not give me permission to repeat it online. Miller unit holders did receive their normal checks but maybe they are a month behind the production stoppage


Carla Powell2
03/11/17 02:47:25AM @carla-powell2:

We are in the j hall unit...signed with Rex which just sold to Eclipse...we did not receive are check in Feb and when I went to site it had revised listed??


David Allen Lilly
03/30/16 10:55:16AM @david-allen-lilly:

I wonder if something is in the wind or if it is just a matter of lowering production to ease over supply concerns which have kept prices low.

I wonder if you can verify production numbers from your statement, which I know is not easy to do.

If they are actually cutting production I wonder if Eclipse would allow an explanation ?

By the way, as an impending royalty receiver I would much prefer my producer just shut our well in until prices go up. Pain before gain is probably the reality here, I will always take the long term benefit over some minimal short term gain.

Thank you for your willingness to share prudent information. Maybe we should get together and meet sometime.


Jeffrey Stoll
03/30/16 12:01:21PM @jeffrey-stoll:

They are choking things back to wait until prices rise. Told to me by guy who writes the checks for Eclipse


David Allen Lilly
03/30/16 12:09:51PM @david-allen-lilly:

To me that would be good news, I hope everyone is prepared for it and can live with it.


Rickey L McLaughlin
03/31/16 04:51:38AM @rickey-l-mclaughlin:

Jeffrey Stoll,

just wondering if He said anything about start resigning leases for Beaver twp and county line of Millwood twp area? like on line? or close. I'd appreciate any information you can give up. I know there not up until next October but that stuff takes a while get done on time. Lot's properties lease'd but no well insight on line/Beaver/Millwood area that I know of just broken promises in the beginning.

Thanks!


Jeffrey Stoll
03/31/16 10:23:27AM @jeffrey-stoll:

That information did not pertain to my situation, so I did not ask that question...sorry. My guess is that they do not want to see leases go away that they already paid for


David Allen Lilly
03/31/16 10:53:15AM @david-allen-lilly:

Mr. McLaughlin,

The word is fairly common that Eclipse is attempting do renewal payments one year at a time, which in every way is to their advantage.

I doubt they are as generous with their efforts towards royalty owners, but maybe they are.

I wonder as to the legitimacy of the back deductions they are taking from current royalties.


Bobbie Farmer
04/05/16 12:46:21PM @bobbie-farmer:

Are they done fracking at the Purple Hays well all the trucks are gone off the fritz well...?.


David Allen Lilly
04/05/16 06:06:07PM @david-allen-lilly:

Bobbie, I think it was just yesterday that I saw the tankers hauling sand go by the house. I haven't heard the noise from out there today though. I hope they are done, the sooner the better for us.


evan
04/05/16 07:20:36PM @evan:
They finished fracking yesterday. Finally
Laura10
04/05/16 09:01:31PM @laura10:
What's next in the process?
John47
04/06/16 06:32:07AM @john47:

They requested a reduction in the setback from 500 feet to no less that 350 feet to the unit boundary. Also submitted an outline of their existing and planned wells showing the Scott B 5H running NE and parallel to Purple Hayes and Yost B 6H running SW parallel to Purple Hayes.The two wells put together run the entire distance of the Purple Hayes with the Scott well already being drilled and Yost listed as planned.


John47
04/06/16 06:35:15AM @john47:

Trying to upload schematic. No luck so far.


David Allen Lilly
04/06/16 10:14:14AM @david-allen-lilly:

Laura,

I believe they will leave it sit for a while before coming in to do the flowback portion and set up the pad. But remember, this is an experimental situation, I don't know how for they will stray from the protocol we have seen previously.


David Allen Lilly
04/06/16 10:16:57AM @david-allen-lilly:

Thank you to all, I am wondering how they will shuffle the units previously permitted to accommodate the Purple Hayes. Ihad not considered the set back part, I was more interested in the shuffling of the unit compositions.


Rickey L McLaughlin
04/06/16 07:33:09PM @rickey-l-mclaughlin:

That would be great if they resign! But I'm not holding my breath! But I just was told they want a one year lease for one thousand acre so I hope that's not there plan. Nobody in area will sign them! I already talked to few camp buddies and that's no go! They will sell out first but it would have to be good offer as it was few years ago! tys!


Rickey L McLaughlin
04/06/16 07:35:52PM @rickey-l-mclaughlin:

don't know on the second part taking back on current royalties! Their isn't enough acreage in my area signed! Actually some have sold out to mineral buyers! for decent monies!


David Allen Lilly
04/07/16 09:15:45AM @david-allen-lilly:

Mr. McLaughlin, there is no such thing as being "sold out to mineral buyers! for decent monies".

Ever.

If you sold your minerals you did not get more than 20% of what your lease would have paid out over its lifetime. You most likely were far closer to 10% of expected lifetime payout.

Especially if you sell now, you are selling low and the buyers will laugh all the way to the summer condo on the beach that they bought with your monies.


David Allen Lilly
04/07/16 09:18:59AM @david-allen-lilly:

I have noticed very little noise coming from the McClain over the last two days although there is still some sort of rig down there and I did hear them banging something large and metal yesterday evening.

The traffic has been considerably less as well. Thank God.

Has anyone heard about a unit Eclipse applied a permit for, a large unit to the east of the McClain with access off of Putney, one which will go northwest and southeast ?

I was told by Eclipse of it back in December, that it was applied for, but I haven't heard anything since.


John47
04/11/16 10:16:45AM @john47:

Here are some answers I received to questions regarding the Purple Hayes well.

Scheduled to start productionon May 10,2016

Division orders are usually sent out 20-30 days prior to production date.

First royalty checks will be mailed approximately 90 days after first production.


sherry2
04/11/16 02:03:39PM @sherry2:

Did everyone else in the purple Hayes unit receive a letter in the mail from eclipse about a meeting they are having may 2 at pine lakes lodge? Just received ours today.

It's a invitation to meet with their representatives, and afterwards tour the well.


Jeffrey Stoll
04/11/16 03:10:47PM @jeffrey-stoll:

Some received the letter on Saturday, and some have yet to receive one...me included


Jan4
04/11/16 03:12:04PM @jan4:
I would advise anyone who is invited to go. Eclipse does a nice job with these meetings. It's also a place to get any questions you have answered.
Bobbie Farmer
04/11/16 03:32:39PM @bobbie-farmer:

Thanks Jan I will be attending..


John57
04/11/16 03:50:14PM @john57:
Here are some answers I received to questions regarding the Purple Hayes well.Scheduled to start production on May 10,2016Division orders are usually sent out 20-30 days prior to production date.First royalty checks will be mailed approximately 90 days after first production.
RO
04/11/16 10:28:59PM @ro:
How can I find out this kind of information (production schedule, expected division orders) on McClain well? Thanks much!
John47
04/12/16 06:23:49AM @john47:

Iemailed the person who sent the letter for the Purple Hayes Lessor Education Meeting: Austin Graybill, District Landman, Eclipse Resources


evan
04/12/16 08:00:36AM @evan:
Your dealing with CHK on the McClain well, they will do nothing like this more than likely. You will more than likely receive your D.O. In the mail eventually. But you can always call them.
Laura10
04/12/16 07:37:56PM @laura10:
Wow this is exciting news! thank you for sharing!
David Allen Lilly
04/14/16 07:55:09AM @david-allen-lilly:

Yesterday when I came home I noticed that the rig they were using for the flowback portion of the process was gone from the McClain.

Last night it was dark and quiet down there. Looking forward to having the McClain and Purple Hayes completed, as well as the pipeline for the McClain, hoping the traffic will die down a little.


Laura10
05/03/16 06:49:33PM @laura10:
anyone get division orders yet for Purple Hayes?
sherry2
05/03/16 07:49:06PM @sherry2:

No,we haven't received ours either. Are you going to the meeting with eclipse at pine lake lodge tomorrow at 4:30? Maybe we can ask them then.


Bobbie Farmer
05/04/16 08:17:34AM @bobbie-farmer:

I went to the meeting on Monday very interesting. Division order will sent out soon.thanks Jan . Purple Hayes


John47
05/04/16 09:23:02AM @john47:

Just received the following email:

"We were able to begin production ahead of schedule; we started flowing yesterday (5/3/16). As for the division order, we actually had some turnover in that department recently so the division orders have not yet gone out. I apologize for the delay, but we are working to get those to you and the other landowners in the unit as soon as possible."


Bobbie Farmer
05/04/16 10:44:31AM @bobbie-farmer:

Thanks John they said they were going to try to get the well on line.on the 3rd


Fast
05/05/16 08:00:56PM @fast:
Heard rumor today from someone in the Hayes and frank Miller unit... The wells were shut in. Said they shut them in February can anyone confirm this ?Thank youFast
evan
05/05/16 08:09:58PM @evan:
Yes they are. Indefinitely ha. Thank goodness can't handle anymore money
Jeffrey Stoll
05/06/16 08:38:05AM @jeffrey-stoll:

Fritz wells also were shut down to a trickle. They appear to have 2 out of the 3 wells now operating at full go....we will see what checks are like in July.


Bobbie Farmer
05/06/16 08:54:06AM @bobbie-farmer:

I .was told they shutdown Wells to drill new wells on the same pad. They drilled the Purple Hays in February for safety.


Fast
05/06/16 09:14:23AM @fast:
So are all the units back up and operating ?When I heard they were shut in, I assumed because of prices.
Fast
05/06/16 09:15:42AM @fast:
Thank you Bobbie
Jeffrey Stoll
05/06/16 09:38:18AM @jeffrey-stoll:

In the below press release the words "voluntary production curtailment" means shut down the wells because oil prices were too low, in my opinion.


Fast
05/06/16 09:56:15AM @fast:
I would agree with you. Sounds about right. I didn't read it yetBecause I'm working. Thanks for the information.
Laura10
05/06/16 06:37:37PM @laura10:
Thanks for posting. What's the buzz on the purple Hayes well results included in this press release? sounds like eclipse is happy with it.
Philip Brutz
05/10/16 08:17:22AM @philip-brutz:

Eclipse Resources Thought to Have Drilled Longest Onshore Lateral in U.S., Possibly World

Eclipse Resources Corp. has drilled what could be the world's longest onshore lateral in Ohio's Guernsey County.

The company drilled, completed and turned to sales the Purple Hayes 1H during the first quarter. It's a massive Utica Shale well, with a lateral of 18,544 feet that was drilled in just 18 days and completed with a slickwater frack of 124 stages spaced at 150-feet.

"We have been told by our service company partners that they believe this to be the longest onshore lateral ever drilled in the United States, if not the world," CEO Benjamin Hulbert told financial analysts on Thursday during a call to discuss the company's first quarter results. "From a cost perspective, this translates into a step reduction in total costs per lateral foot, which is almost 30% better than our lowest cost well previously drilled."

The company has been testing extended reach laterals, but the Purple Hayes is on an entirely different level. The goal of the well, management said, is to enhance the return profile of the Utica by determining the technical limits of lateral length in the liquids portion of its acreage. The Purple Hayes was drilled in the company's condensate window to confirm total costs and assess recoverability per lateral foot compared to more traditional lateral lengths of 8,000-10,000 feet in the play.

Hulburt said the well cost about $15.8 million to drill and complete, which is 5% less than the company estimated. He added that the company believes it can actually drill longer laterals and said the techniques should translate well across the Ohio pure-play's acreage.

COO Thomas Liberatore said the well was put to sales on Tuesday (May 3) on managed choke. After the first 24 hours of flowback, the well was producing 5 MMcf/d and 1,200 b/d of condensate. The gas rate is expected to increase as the well cleans up, and Eclipse said it expects 80-90 bbl of natural gas liquids per MMcf and another 175-180 bbl of condensate per MMcf once the well stabilizes.

Despite the Purple Hayes milestone, Eclipse said it would again idle its sole rig until late summer when it prepares to ramp-up its operations ahead of what it believes will be a rebound in natural gas prices in 2017. Earlier this year, the company said it would idle its drilling program and voluntarily curtail volumes across its acreage to keep production flat at around 200 MMcfe/d to protect its oil and gas and wait for better prices (seeShale Daily,Jan. 5). Other than the Purple Hayes well, the company turned no new wells to sales during the first quarter and it did not participate in any non-operated wells.

The company produced 201.1 MMcfe/d during the period, up from 160 MMcfe/d in the year-ago quarter and down from the 247 MMcfe/d it produced in 4Q2015 on curtailments. Hulburt said challenges are ahead for the company as it believes the second quarter could be the worst this year for natural gas prices. But like other Appalachian operators that reported on Thursday, including Rice Energy Inc. and Gulfport Energy Corp., Hulburt said he remains optimistic that gas prices will begin to increase in 2017 as production across the country continues flattening and demand increases.

"We are executing on our plan, focused on streamlining our operations for maximum efficiency, vigilantly attacking all aspects of our cost structure [and] maintaining balance sheet flexibility to return ourselves to a strong growth trajectory when commodities recover," he said.

Analysts have said Eclipse could face financing and liquidity strains next year if natural gas prices don't improve (seeShale Daily,March 3). The company has $233 million in liquidity, including about $135.8 million in cash and $97 million available under its revolving credit facility. Management has said it plans to fund this year's $168 million budget within cash flows, and added that the companys costs came down in the first quarter.

Eclipse completed two of its three planned non-core assets sales during the first quarter, netting $9.6 million. It also plans to close on another $4 million non-core sale during the second quarter. The assets are mostly conventional properties, Eclipse said.

Total operating expenses were $17.5 million or 95 cents/Mcfe, 27% below the low end of the company's guidance. It has also continued to reduce staff, with its general and administrative expenses now forecast for $30 million this year, or 17% below previously announced levels.

Including hedges, the company's average realized price during the period was $2.89/Mcfe, compared to $3.60/Mcfe in 1Q2015. Along with increased production, that helped push revenue to $49.6 million from $43.8 million over the same time.

Eclipse reported a net loss of $40.7 million (minus 18 cents/share), compared to a net loss of $34.1 million (minus 17 cents/share) in 1Q2015. Low commodity prices once again led to an impairment expense of $17.7 million on proved Marcellus Shale properties and an impairment of $9.4 million to unproved leasehold expirations during the first quarter. Eclipse recorded a $787 million impairment on its proved and unproved properties in 2015.


Rickey L McLaughlin
05/17/16 12:54:57AM @rickey-l-mclaughlin:

Thanks! thanks no to far off though! Eclipse keeps claiming they are drilling for miles now! Who knows??


Laura10
05/19/16 06:58:37AM @laura10:
Anyone receive division orders yet? my in-laws haven't
Laura10
05/21/16 09:25:36PM @laura10:
saw a couple tanker trucks leave the gathering facility today. Mr Lilly, what have you been seeing?
colt
05/22/16 02:21:23AM @colt:
David how is it going any news on McClainsite yet? Thanks
evan
05/22/16 08:47:24AM @evan:
I'm not David but I do know that they are hauling oil off of McClain pad and pipeline is hooked in and condensates are flowing. For a Few weeks now. Not sure when they will send out the D.O. or start paying
Bobbie Farmer
05/22/16 11:04:08AM @bobbie-farmer:

No not yet. does anyone know what's going on about the yost or Scott well everything is gone from the pad.


Jan4
05/23/16 03:05:27PM @jan4:

https://www.uslandrecords.com/ohlr3/controller?officeid=1&ptrNo=201600002584&name=ECLIPSE+RESOURCES+I+LP&verified_docs=&rowincrement=25&commandflag=getDetails&optflag=DetailsCommand

Eclipse has filed the pooling agreement for the Purple Hayes. Since it just went into production at the beginning of May, division orders can be expected probably around the first of July, in my experience. Payments are two months in arrears, so you can expect a check probably at the end of July. They usually cut checks about the 25th of the month.


ken5
05/23/16 10:50:56PM @ken5:

Eclipse left the Yost pad to go to woodsfield to drill three Wells, should be back around August.


John47
05/24/16 06:15:51AM @john47:

Received our division order for Purple Hayes yesterday.


David Allen Lilly
05/24/16 07:44:12AM @david-allen-lilly:

Yesterday I stopped a Chesapeake man in front of my house who told me they have 6 of the 8 wells flowing and the last two should be producing by Saturday.


KT3
05/24/16 10:08:39AM @kt3:

On the McClain well ?


David Allen Lilly
05/25/16 08:29:27AM @david-allen-lilly:

Yes, on the McClain well.


David Allen Lilly
05/25/16 08:40:12AM @david-allen-lilly:

I see many have inquired about the McClain. There are many, many trucks running out of there, large and small. I intend to call them today about the dust from the driveway to the unit and I will ask of the division orders and the royalty payments getting sent out.

I am trying to finish up a project here at home and then will start interviewing attorneys and/or accountants specializing in oil and gas royalties and leases.

I will be starting a thread looking for any insight others may be able to offer.

I am most interested to see how Chesapeake treats us versus everything we are told about them.

I also had a conversation with someone high up in NARO last week, I awaiting some literature about royalties but the man admitted to me they are woefully inadequate in assisting landowners with the situation probably most important to them.

He has no reason for the organizations lack of effort in the arena of royalty payments to landowners.


David Allen Lilly
05/26/16 08:28:27AM @david-allen-lilly:

Per my conversation yesterday with Chesapeake:

The wells from the McClain pad running south, under Putney, were turned on first, about the middle of this month, with the remainder coming into production through this weekend when all are expected to be on line.

The man told me that Chesapeake doesn't send out division orders for 120 days after production begins, he didn't say if they were calendar days or business days and I didn't ask because I don't care.

He told me that royalty checks will be generated after the signed division orders are received back to Chesapeake. Again, he didn't say exactly how long between receiving the signed division orders and the royalty checks going out.

Lastly he told me that it would be sometime in September or October before anyone gets a check.

I am soon to begin the process of hiring someone to verify my royalties match my lease and current market prices. I would think that it would be advisable for those of us in the unit to do this together, if anyone is interested. I will be getting further into this avenue as well as dealing with the NARO folks in helping folks understand their royalties as we get closer to the Fall.


David Allen Lilly
05/26/16 12:20:03PM @david-allen-lilly:

Also, I requested yesterday that Chesapeake put some dust suppressant on the road back to the McClain pad and they kindly obliged and I intend to call them and thank them.


sherry2
06/25/16 10:15:24AM @sherry2:

Very heavy traffic (tankers) the last few weeks going to the gathering facility on grape hollow road. It seems like at least ten or so a hour. Someone's making money.


Fast
06/25/16 10:43:51AM @fast:
You got that right
David Allen Lilly
06/30/16 06:50:43AM @david-allen-lilly:

Earlier this week I noticed a temporary water line is being used again that runs under 513 between Quaker City and the interstate.

I think this was the line used to frack maybe the Yoder wells ?

Anybody know what is happening ?


John47
06/30/16 10:30:23AM @john47:

From Eclipse dated 6/28/16 "The Company released additional information on the initial performance of its first Super-Lateral well, the Purple Hayes well. During the first 45 days of production, the well has produced cumulative production of approximately 583 MMcfe and has exhibited very shallow pressure declines of approximately 50 Psi per week. The well continues to produce at its managed choke target rates with flat production and no change in the condensate yield to date. The Company believes this to be indicative of better than anticipated performance and remains optimistic with the results to date, although no assurances can be given as to the long-term performance of the well at this juncture."

Can someone translate what 583 MMcfe means to the layman? Understand this is only for 45 days, is this comparable to surrounding wells?


bo  boboski
06/30/16 03:50:34PM @bo-boboski:

I believe,IMHO. that Eclipse is using the performance results from this well to help make their company,and well/leaseholds more attractive to buyers interested in their company, if not buyers,then investors.


Jan4
06/30/16 04:16:32PM @jan4:

http://ir.eclipseresources.com/press-release/eclipse-resources-announces-operational-update-and-amended-guidance

STATE COLLEGE, Pa., Jun 28, 2016 (BUSINESS WIRE) -- Eclipse Resources Corporation ECR, -2.05% (Eclipse Resources or the Company) announced today that it has priced an underwritten public offering of 37,500,000 shares of its common stock at a price to the public of $3.50 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 5,625,000 shares of the Companys common stock. The offering is expected to close on July 5, 2016, subject to customary closing conditions.

The Company intends to use all of the net proceeds from the offering, including any net proceeds from the underwriters exercise of their option to purchase additional shares, to fund a portion of the Companys capital expenditure plan through 2017 and for general corporate purposes.

Goldman, Sachs & Co., KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC and BMO Capital Markets Corp. are acting as joint lead book-running managers of the offering.


Jan4
06/30/16 04:17:55PM @jan4:

http://ir.eclipseresources.com/press-release/eclipse-resources-announces-operational-update-and-amended-guidance

STATE COLLEGE, Pa.--(BUSINESS WIRE)--Eclipse Resources Corporation (NYSE: ECR) (the Company or Eclipse Resources) today is pleased to provide the following operational update, revised capital expenditure plan for 2016 and amended guidance.

  • During the second quarter, the Company recommenced its operated drilling program and is currently drilling its second well in the program in the dry gas area of Monroe County, Ohio. Additionally, the Company commenced completion operations on its drilled but uncompleted wells and has completed two wells in the ongoing program to date
  • The Company intends to spud a total of 10 to 12 net wells for the full year 2016
  • The Company intends to complete a total of 21 to 24 net wells for the full year 2016, which includes 16 to 19 net wells of drilled but uncompleted wells that are currently held in inventory
  • Given current forward commodity prices, the Company expects to cease its voluntary production curtailment program at the end of the third quarter of 2016
  • For the full year 2016, the Company is raising its production guidance to approximately 205 to 210 MMcfe per day as it expects to reestablish flowing its wells at normal type curve rates during the fourth quarter of 2016 and now anticipates fourth quarter 2016 production to average approximately 240 MMcfe per day
  • The Companys board of directors has approved an increase to the Companys capital expenditure budget of approximately $28 million, which budget was previously set at $168 million
  • During the second quarter of 2016, the Company has continued to add to its hedge position with:
    • Approximately 170,000 MMBtu per day of natural gas hedged at an average floor price of $2.84 per MMBtu in 2017 which represents approximately 75% of expected production based on the midpoint of the Companys production guidance for 2017
    • Approximately 3,500 Bbls per day of oil hedged at an average floor price of $46.00 per Bbl in 2017 which represents approximately 75% of expected production based on the midpoint of the Companys production guidance for 2017
  • The Company released additional information on the initial performance of its first Super-Lateral well, the Purple Hayes well. During the first 45 days of production, the well has produced cumulative production of approximately 583 MMcfe and has exhibited very shallow pressure declines of approximately 50 Psi per week. The well continues to produce at its managed choke target rates with flat production and no change in the condensate yield to date. The Company believes this to be indicative of better than anticipated performance and remains optimistic with the results to date, although no assurances can be given as to the long-term performance of the well at this juncture.

Benjamin W. Hulburt, Chairman, President & CEO commenting on the operations, The Company has recently made the decision to accelerate our operated drilling and completion activity, ahead of our previously announced third quarter 2016 original start. Looking at current forward strip prices, we anticipate lifting our self-imposed production curtailment program and bringing our production back on line at the end of the third quarter of 2016. Based on where current forward strip prices are, we expect to continue to complete our drilled uncompleted wells through the remainder of the year and into the first quarter of 2017, and to continue to run our operated rig continuously going forward. We continue to forecast production growth in 2017 between 40% to 60% as compared to our forecasted production for 2016. Since recommencing our drilling in the Dry Gas area of our acreage, we have already finished drilling the Holliday A 1H well with a 10,000 foot completed lateral length in 18 days from spud to TD, and I remain extremely proud of our teams operational excellence, along with the efficiency and cost structure they can provide. Lastly, while we can never completely eliminate commodity risk, we believe we have significantly reduced that risk next year by substantially increasing our hedge position, while at the same time structuring our hedge portfolio to not eliminate our exposure to further commodity price increases.


Laura10
07/31/16 12:39:33PM @laura10:
In laws received check from purple Hayes for May, looks like 22.00 an acre a day
bo  boboski
07/31/16 02:06:50PM @bo-boboski:

You mean $2200. ? or $22.00? If it's $22.00 they are getting shafted!


KT3
07/31/16 02:14:58PM @kt3:
So you are saying about $660 per acre per month.Two questions: Is that after deductions? And What is the Royalty percent?
Laura10
07/31/16 03:40:46PM @laura10:
The lease is 18.75 % and yes after deductions. I don't know exactly what is deducted. June check will be a full month so be interesting to see the difference
KT3
07/31/16 04:07:28PM @kt3:
Ok thanks Laura !
Jeffrey Stoll
07/31/16 08:31:00PM @jeffrey-stoll:
If I had 20 acres in a unit that paid me 13,000 per month with oil prices where they are and a partial month, I would be happy happy happy
bo  boboski
08/01/16 05:29:26AM @bo-boboski:

My bad, I thought you meant $22. per month,not "day". Didn't know that was a partial month either, so yea, congrats.That well is so long that it should be producing what 3 normal wells do, At 18.75% lease and Eclipse's deductions, you probably are only getting 12% Someone with a 20%/no deduction lease will be REALLY happy! If there is such a thing anymore,loBut Hey, we all really appreciate you telling us what your getting from royalties. It gives us an idea what to expect off other wells in the area, if any of us gets so lucky .


Jeffrey Stoll
08/01/16 11:15:50AM @jeffrey-stoll:

I just looked at my royalty check from this month more closely and realized I also was paid for Purple Hayes. We have .1 acres(point 1) in the PH. Check was for $48.78, which would be 487.80 for 1 acre for the month. We are at 12.5% with no deductions.


Laura10
08/01/16 12:27:00PM @laura10:
how often do they send checks?
Jeffrey Stoll
08/01/16 01:47:46PM @jeffrey-stoll:

The checks come monthly. They are set to come on the 1st of the month but Eclipse usually gets them out 3-5 days before that.


bo  boboski
08/01/16 03:09:21PM @bo-boboski:

Thanks for the info!


Laura10
08/02/16 09:23:20PM @laura10:
I was wondering how PH compared to your other royalties?
Jeffrey Stoll
08/03/16 10:00:10AM @jeffrey-stoll:

Hard to determine apples to apples because they had 1 of the 3 wells shut down for a while, and then choked more than the others. I believe that well and maybe the others are not being fully produced( Fritz). I also don't know if the PH was going full blast, how many days it was in production, etc. But to answer your question, this month iswas about $400/acre from Fritz, about 20% less than PH.


Laura10
08/03/16 11:03:04AM @laura10:
Thanks very much for the info! will be interesting to see how a full month compares. thanks again!
John47
08/04/16 06:46:08AM @john47:

Anyone know what's going on with the Scott Units 1H and 5H. New plat shows the Great Scott Unit with 703.123 acres. Additional acreage looks like a handle extending down and ending next to Frank Miller Unit. Well plats are dated 05/20/2016.


Laura10
08/04/16 06:53:59AM @laura10:
Can you post a link to this plat? Thank you
John47
08/04/16 07:05:54AM @john47:

Not sure if this will work. I go to Well Viewer on ODNR site and look at Well Summary report for the well. It's the first one listed.

https://gis.ohiodnr.gov/MapViewer/download.ashx?8F4CBA6E-8613-450C-B000-5F235213BD8EWSC


Philip Brutz
08/04/16 08:18:08AM @philip-brutz:

Interesting, one unit from two different pads.


John47
08/04/16 01:12:41PM @john47:

What I can't tell from the plat is where the entry point is for that handle piece coming off the Scott Well. Could it be coming off the Miller Pad? I'm hoping the Yost Well picks up the acreage between this Great Scott Unit andPurple Hayes.


Philip Brutz
08/04/16 01:46:37PM @philip-brutz:


John47
08/04/16 01:52:48PM @john47:

Couldn't find anything on site for Miller showing a revision like there is for Scott. That center dashed line is for proposed Scott 3H if you follow it towards I-70 although it looks like it's coming off Miller Pad.


Jeffrey Stoll
08/04/16 02:04:51PM @jeffrey-stoll:

Anyone hear anything further regarding the forced pooling with the state to go under rt 70 that is effecting the Fineran unit?


sherry2
08/04/16 07:42:35PM @sherry2:

We got one also. I think if I am looking right, that the check was only for 13 days? If I remember right the purple hayes came online 5-3? and it's showing the dates of it being sold 5-16? I am not sure, but that's how I read it. Stupid question for anyone that know, do we get taxed on the amount before deductions? or after?


John47
08/05/16 07:24:01AM @john47:

The 5/16 is month and year.


Rickey L McLaughlin
08/24/16 05:05:41AM @rickey-l-mclaughlin:

Anything leading into Beaver twp or Millwood county line Eldon rd. into Jacks Run Rd.? Rumors are flying 2019-2020


scott peterson2
08/28/16 08:14:29AM @scott-peterson2:

Buddy of mine just got released by Antero on St Johns Rd.. Original lease thru KWG&D + 15%.


David Cain
09/02/16 12:20:06PM @david-cain:

According to ODNR numbers just released for the 2nd quarter,Eclipse's Purple Hayes well in Millwood is the number 1 oil producing well in the state. 71,000 barrels in 58 days. Granted the well is a lot longer than other wells but it was only in production for roughly 2 of the 3 months during the quarter. I am hoping thiswill helpthose of us inMillwoodthat are looking to lease again or get renewed.


scott peterson2
09/02/16 12:28:31PM @scott-peterson2:

Amen to that Dave!


David Allen Lilly
09/23/16 08:01:44AM @david-allen-lilly:

I am now aware of two landowners who refused the lease renewal offers that change the land bonus payments to yearly increments of what the lease calls to be paid upfront in one lump sum.

One is a smaller acreage, about 5 and the other is around 75 acres, they are in two different townships, one in Millwood.


David Cain
09/23/16 11:03:25AM @david-cain:

David,

I hope it works out for those landowners. I have a 54 acre parcel in Millwood township that Chesapeake did not renew in June. While I am glad to be out from underneath Chesapeake I have not hadgood offers on myparcel. Hopefully,things will change in the future.

Thanks,

Dave Cain


Philip Brutz
09/23/16 12:00:49PM @philip-brutz:

Are they now without a lease?


mike19
09/27/16 03:52:39PM @mike19:
I am in Millwood township with 70 acre's under leased till next October.We have been contacted by 3 different landmen wanting us to sign a new lease on a five year, one year at a time.We told them if they wanted to amend the lease on the term we wanted to amend the lease with no fees.They never got back with us
bo  boboski
09/27/16 07:52:20PM @bo-boboski:

good for you.


Laura10
10/02/16 02:04:20PM @laura10:
Purple Hayes checks down a good bit. Anyone know why?
scott peterson2
10/03/16 08:26:33AM @scott-peterson2:

I am in Millwood Twp and leased with Gulfport, expiring end of Oct. Just found out from my atty that GP is not renewing any leases in Millwood. They only have interest is a few small areas of Guernsey at this time.


David Cain
10/03/16 11:20:44AM @david-cain:

Scott,

Sorry to hear you aren't being renewed. Did your attorney make any recommendations on trying to get your land leased with anyone else? I am working with Bill Williams from KWGD on my parcels in Millwood and only received interest from Eclipse at $1,000 per acre and 15% no-cost royalty. They wouldn't move off those numbers, so I decided to wait a little longer to see if prices go up or new players show up interested in Millwood. Do you or your attorneythink there would be any benefit in trying to get several landowners together from Millwood township to improve the chances of getting a good lease?

Thanks,

Dave Cain


scott peterson2
10/03/16 11:24:53AM @scott-peterson2:

Same atty Dave and had a crappy offer from Eclipse on a 8 year lease with bonus being paid yearly vs upfront. 15% gross lease also.

Did they offer you a paid upfront lease at %1,000 acre or paid yearly over 8 years?


David Cain
10/03/16 11:39:04AM @david-cain:

Scott,

It was paid yearly over the 8 years - I think the term is delayed rental.


scott peterson2
10/03/16 11:41:00AM @scott-peterson2:

Yup which also means that if they do end up drilling and you are included in the unit, the lease is considered paid up so the remaining delay payments are nullified. Sounds like same deal they pitched me on.


Jan4
10/03/16 04:27:24PM @jan4:

Scott and David,

This is what is going on right now. I know someone who got the same offer from Eclipse if Ascent did not renew. Ascent renewed - but on the same terms as the Eclipse offer. $1K/acre - paid over 8 years.

Royalty payments are better than delayed rental payments!


scott peterson2
10/03/16 04:35:02PM @scott-peterson2:

5 years and 18 % I would have bitten on not 8 years at 15%. Ill wait.


Fast
10/03/16 05:58:37PM @fast:
Scott,Very wise move!! I'd wait it out too.
David Cain
10/04/16 03:35:49PM @david-cain:

Jan,

Thanks for the information. It matches what I have been hearing. If the royalty percentage being offered now were in the 17.5-20% range with no deductions I would be more inclined to sign up. But at this point I think I will wait a little longer and see what happens with all these leases coming up for renewal. I am also wondering what Rex is going to do with the Warrior South acreage since they have done very little with it so far. If another oil and gas company comes in and obtains this acreage they may want mine as well and be willing to make a better offer.

I rushed into the first round of leasing back in 2011 and could have gotten quite a bit more upfront money if I had been patient. I have made several painful mistakes along the way. I guess if I am going to make another mistake then I would rather it be because I am being too cautious. I am just thankful that I have this acreage and an opportunity to better secure my family's future financial security.

Dave


Jeff S
10/04/16 04:09:27PM @jeff-s:

HI Guys,

I have been following your blog with great interest. I am wondering the same thing about Rex as I am in the Warrior South on the eastern edge of their acreage and my lease expires in July 2017. Where are you guys located in Millwood? Jeff S


David Cain
10/04/16 04:52:02PM @david-cain:

Jeff,

I'm on the eastern edge of the county on Barker Rd. We must not be too far apart. One of my neighbors leased with Rex. The last time I talked to him, which was several months ago, he said that Rex was planning to renew his lease. I don't know if that happened or not. I don't live down there so it is sometimes difficult to keep up on details.


Jeff S
10/04/16 07:37:42PM @jeff-s:

Thanks David, I hope your right. I am also on Barker Rd, I have the brown house with the big red and green barn. Stop by the next time you are down.


Fast
10/04/16 08:17:14PM @fast:
David
Don't be too hard on yourself. I think a lot of people would change things if they knew what they know now. Now that you know the game ... you can't be to cautious. Be patient and be glad you may have another chance in the future. If not .. you didn't sell your soul to the devil!!

David Cain
10/06/16 09:48:04PM @david-cain:

Jeff,

I didn't realize who you were or that our properties were so close to each other. good to talk to you. I will stop by and introduce myself. Now that it is deer season, I will be down there fairly often.

Thanks,

Dave


Carla Powell2
12/20/16 08:25:48PM @carla-powell2:

Anybody been contacted in Millwood township recently? We are leased with Rex and receiving royalties from j hall well. We received a declaration of pooling & unitization letter 10/18/16...


Philip Brutz
01/13/17 12:00:28PM @philip-brutz:

http://marcellusdrilling.com/2017/01/rex-energy-sells-4100-acres-14-utica-wells-in-oh-to-antero-resources/

Rex Energy Sells 4,100 Acres, 14 Utica Wells in OH to Antero Resources


Rex Energy announced yesterday the company has cut a deal with Antero Resources to sell all of Rex’s “Warrior South Area” assets to Antero. Which may should like a big deal, but really isn’t. The assets sold include 4,100 net acres in perhaps the hottest part of the Ohio Utica Shale: Guernsey, Noble and Belmont counties. It also includes 14 Utica Shale wells. However, the wells are only producing 9 million cubic feet per day (MMcf/d) collectively. The sale price is $30 million–or $7,317 per acre. Rex says the acreage and wells are in a “non-core” area for the company. Rex, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges. In December the company was warned by the New York Stock Exchange that the per share price is too low and the stock is in danger of being delisted (see Rex Energy Stock Threatened with De-Listing by Nasdaq). This sale is the latest in a string of sales meant to improve the company’s financial health…

Also mentioned in the announcement below is that Rex’s bankers have, once again, reaffirmed the company’s “borrowing base” as $190 million. A company’s borrowing base is the value of its assets–in this case the value of the leases and oil/gas wells Rex owns. Those assets are used as collateral to back up loans and IOUs. In October Rex felt it necessary to reaffirm the borrowing base for the second time in three months (see Rex Energy Borrowing Base Re-Affirmed for $190M, 2nd Time in 3 Mos.). This now makes the third time the borrowing base has been reaffirmed in the past half year–a bit unusual and no doubt meant to ease investor concerns.


Rex Energy Corporation (Nasdaq:REXX) (“Rex Energy”) today announced that it entered into a purchase and sale agreement with Antero Resources Corporation (“Antero”) pursuant to which Antero will acquire the company’s Ohio Utica assets in the Warrior South Area. Rex Energy is selling its entire interest in the assets and expects to receive net proceeds at closing of approximately $30.0 million (subject to customary closing and post-closing adjustments). The assets that are being divested are non-core and were not included in the company’s future development plans. Included in the sale are 14 gross wells and approximately 4,100 net acres in Guernsey, Noble and Belmont Counties in Ohio; the assets are currently producing approximately 9.0 Mmcfe/d. Rex Energy expects to use the proceeds from the sale to pay down the revolving line of credit and for general corporate purposes. The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions and required approvals.

Upon the closing of the transaction, the company has received approval from its bank lenders to maintain the existing $190 million borrowing base under its revolving credit facility.

“Rex Energy routinely evaluates our asset portfolio to align our development plans with the strategic deployment of capital,” said Tom Stabley, Rex Energy President and Chief Executive Officer. “With limited opportunity to expand our development in Warrior South, and high quality assets located in near proximity to Antero’s operations, we view this transaction as a win-win for both parties.”

Mr. Stabley continued, “This transaction is another in a series of initiatives we’ve undertaken in the last 12 months to strengthen our balance sheet and enhance Rex’s liquidity position. Once completed, the sale of the Warrior South assets plus our previous sale of the Illinois Basin and other non-core assets will have generated over $71 million of additional liquidity.”

The company plans to update the market regarding its 2017 and 2018 development, capital, and financial plans and production projections in conjunction with or shortly following the closing of the Warrior South sale. (1)


Rex began its current campaign to shed assets and raise money last year, when it sold its 60% share in Keystone Clearwater Solutions, the company’s water service subsidiary (see Rex Energy Sells Keystone Water Subsidiary to American Water Works).

Following the sale of Rex’s Warrior South assets, what’s left in Rex’s portfolio?


The sale leaves Rex with its Warrior North area in Carroll County, OH, nonoperated properties in Pennsylvania’s Westmoreland, Clearfield and Centre counties, and the Moraine East area in Western Pennsylvania, which sits to the north of the company’s core Butler operations.

While the transaction would seem nominal, Rex has been working to generate more cash since commodity prices began their downward spiral in mid-2014. The company remains highly leveraged, with analysts at Wells Fargo Securities estimating that its pro-forma liquidity remains at only $45 million after the sale and speculating that more restructuring is ahead. (2)


Rex’s stock price as of this morning, still well below the $1 minimum needed to remain listed on the NYSE:

http://marcellusdrilling.com/wp-content/uploads/2017/01/Rex-Energy-stock-price-1-5-17-300x241.png 300w" sizes="(max-width: 600px) 100vw, 600px">


Jeff S
02/24/17 11:14:08AM @jeff-s:

Antero has just started sending out letters to the folks in their Guernsey Rex leases they just bought that expire in July. They want us to renew the original lease at 800 per acre on a yearly basis. 5 or 10 years term. I think we need to group together again to get the best deal, anybody that is interested give me shout at sciullij@yahoo.com. -


Reuben
02/27/17 10:58:30AM @reuben:

I haven't received my letter yet; however, I'm willing to meet as a group.  I'd prefer the current lease agreement.... rather than their current offer.


Jeff S
02/27/17 12:53:59PM @jeff-s:

I got my letter Saturday. They want to amend the lease to allow for 1000 acre units which I am all for. Then they want to extend the primary term and pay yearly 800 per acre for up to 5 years rather then all up front which I do not like so much. The Amish in my area are not very happy either I hear. I will let you know if any meetings pop up.


bo  boboski
02/27/17 04:22:31PM @bo-boboski:

Stand your ground! that oil&gas belongs to you. If they want to harvest it,then make a deal that doesn't cheat you out of your trees/minerals.


Reuben
03/06/17 01:18:31PM @reuben:

Thanks!  I'd prefer mine all up front as well...


Philip Brutz
03/02/17 11:56:21AM @philip-brutz:

Here is a screen capture of the latest permits.


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bo  boboski
03/02/17 05:09:30PM @bo-boboski:

Looks like the Great Scott and the Outlaw will be on the Yost pad. same address on permit.Twp. rd.


ken5
03/31/17 10:54:56AM @ken5:

I thought the outlaw well was coming off the Miller pad.


Bobbie Farmer
03/03/17 02:59:43PM @bobbie-farmer:

Thanks good to hear .But yost well is in wills twp?


bo  boboski
03/06/17 06:08:45PM @bo-boboski:

Thanks, how can I access the county engineer's reports? cant find it anywhere.


bo  boboski
03/07/17 03:39:29PM @bo-boboski:

Thx; John57.  this may be better than ODNR's delayed updates.


John57
03/08/17 09:25:54AM @john57:

Just saw on the Oil and Gas Well Locator site the Great Scott 3H well will come off the Miller pad and extend all the way to 70.  No platmap available at this time.


Karen49
03/08/17 10:35:25AM @karen49:

Attached is the platt map for the Great Scott well. 


pdf

John57
03/08/17 10:54:27AM @john57:

That's for the Great Scott 5H.  May be the same as the 3H.  Will have to wait until they update the site.  Waiting on the two new Yost well plats in case someone sees them before I do.


bo  boboski
03/08/17 02:39:14PM @bo-boboski:

Strange. the surface owner is Terry Scott,but the well will be drilled from the Miller pad?


bo  boboski
03/09/17 05:10:38AM @bo-boboski:

Any map for the Outlaw?


John57
03/09/17 06:02:17AM @john57:

The locator site shows the Yost, Great Scott and Outlaw wells all located next to Miller with bottom holes heading  towards Scott well.    Well sizes add up to 1,400 acres.  Thinking the site needs to be updated.  Doesn't make sense not to put the two Yost wells on the Yost pad located next to Scott pad.   No plat maps in detail section as of yet for any of the new wells. 


bo  boboski
03/09/17 06:16:39AM @bo-boboski:

The ODNR site shows a total of 5 super laterals bottoming out at I-70 ,all from the Frank Miller pad,except for the Purple Hayes. the 4 new ones will go thru the Terry Scott and Yost properties. The royalty owners  list will be extensive. Only map I've seen was the Great Scott. I figure when the rig comes to the Miller,it'll be there all summer.


John57
03/10/17 08:54:28AM @john57:

How can you have 4 super laterals all covering the same acreage?  Still maintain the site has not been updated with correct information.


scott peterson2
03/10/17 08:58:26AM @scott-peterson2:

I am pretty sure it will be updated .


John57
03/10/17 09:02:44AM @john57:

Been waiting for the platmaps to be posted.  If anyone sees they are available, please give a shout out.


Bobbie Farmer
03/10/17 05:58:11PM @bobbie-farmer:

Odnr has put new maps on it .still haveing trouble with maps opening them


Laura10
03/11/17 07:20:34AM @laura10:

I don't see the maps.  Where did u find them?  Thanks for the help. 


Philip Brutz
03/11/17 08:40:50AM @philip-brutz:

The easiest way to view maps is the ODNR Oil and Gas Well Locator  http://oilandgas.ohiodnr.gov/well-information/oil-gas-well-locator  

Zoom in on the well that you are interested in, then click on it, then click on "Well Summary", then click on one of the "Platmaps", the PDF file should then download.  You will need Adobe Acrobat installed on your computer to open the map. 


Bobbie Farmer
03/11/17 08:52:18AM @bobbie-farmer:

Ok thanks ,just having trouble on this new table,it still showing the old plate maps for the yost....


Philip Brutz
03/11/17 03:17:51PM @philip-brutz:

It is probably not you, but ODNR.  The county engineers report is the very first report, the platmap will come latter.

 


Jeff S
03/13/17 06:06:15PM @jeff-s:

Question for the group: Will signing a amendment to allow for for a 1280 acre pooled units hurt my royalty payments in the long run? I would think it would not matter, double the gas and oil being collected over a 640 acre unit with the same per acre %. Amish in our area are being advised that it would negatively effect it.


Philip Brutz
03/14/17 08:30:21AM @philip-brutz:

Do you want to be part of one of the "Super Laterals" that Eclipse is now favoring?


scott peterson2
03/14/17 08:48:19AM @scott-peterson2:

I am all for it


Jeff S
03/14/17 08:49:00AM @jeff-s:

No this is what Antero is asking for in their amendment. I assume they are also planning super laterals.


scott peterson2
03/14/17 08:50:44AM @scott-peterson2:

Where is your land in Millwood Jeff?


Jeff S
03/14/17 08:53:14AM @jeff-s:

Barker Rd, facing Shannon Run.


scott peterson2
03/14/17 08:56:59AM @scott-peterson2:

im on sycamore above Salesville. Lost of activity planned in our area and the super laterals are the new big thing.


David Allen Lilly
03/20/17 08:22:29AM @david-allen-lilly:

Yesterday while working in the woods here at the house I could hear steel being hammered, like during rig construction, maybe at the Miller pad ?

Anyone know anything about it ?

I will take a drive around later this morning.


John57
03/20/17 08:30:28AM @john57:

Well locator site shows Yost B 5H and Outlaw status as "Drilling".   Still no platmaps.  Still think locations are not correct.  Four wells all located between Miller and Hayes. 


David Allen Lilly
03/21/17 09:28:33AM @david-allen-lilly:

Since my last comment I have seen some equipment come by the house up here on Putney, headed west, probably for Rosedale Road and the Miller pad.

I drove by there yesterday and didn't see a rig but I do believe that is where the steel on steel pounding I heard Sunday was coming from. As I went passed Xanadu road, which runs off of Rosedale I passed some more bigger pieces, they were already passed the Hayes pads and I have to believe they were headed to the Miller.

It also looked like there was some sign of trucks going up the Law pad driveway but I cannot confirm that it would be enough to mean much of anything.

As some others have noted, it looks like they are indeed fracking the well on County Home road, I think the Shipman well. And they are also running what I can assume is pipeline from that well towards the east ?? and maybe whatever Mark West ??? pipeline is already  in the ground.

I also noticed some activity off of Greenlawn a littel out of Quaker City, I have heard that there is to be another big multi-unit pad going in there.


Jeff S
03/21/17 09:35:27AM @jeff-s:

I was down that way this weekend. There is a big pad or something going in right across the street from Lashelys.


Soundcraft
03/21/17 10:04:57AM @soundcraft:

Jeff S, were the Amish individuals you speak of under a Rex lease and now Antero is trying to amend or ratify?


Jeff S
03/21/17 10:11:33AM @jeff-s:

Yes, we are all in Rex's former Warrior South acreage. Our contract calls for a $800 per acre x 5 years up front payment to continue the contact another 5 years and they want to go to a yearly renewal.


Rob Rotz
03/27/17 02:36:49PM @rob-rotz:

Jeff, i just heard that my neighbor with 80 ac between me and the sawmill did not get paid from Eclipse today.  he signed the extention, payment was due today.  he called and they said not paying... if this is true, it is bad news for Barker rd, well my side anyway...............


David Allen Lilly
03/27/17 06:50:30PM @david-allen-lilly:

Rob, would it be more likely that Antero would drill that ground with their new lease holdings purchased from Rex recently ?


Rob Rotz
03/28/17 10:23:11AM @rob-rotz:

i would think so.  it would be nice to be leased with a real producer, not a one well a year little guy.


bo  boboski
03/21/17 09:05:34PM @bo-boboski:

according to a guy who works for one of the rig service companies,Eclipse will be bringing the rig in next week and will be there for two months. I don't think that's enough time to drill all 4 of those long laterals,maybe two? Just guessing the Yost wells, but the Great Scott is the only one of the 4 that has shown us a plat map.


bo  boboski
03/22/17 06:04:38AM @bo-boboski:

On the Frank Miller pad,ODNR site has the Yost B5 and the Outlaw as the two permitted long laterals as "drilling" status. the other two as just permitted. Still no platmaps??? They have 4 wells permitted for the Yost pad. Yost 2-4-6-8- I bet the Yosts are happy!


bo  boboski
03/22/17 06:26:21AM @bo-boboski:

After further review, looks like its the outlaw and the great scott that are the 28000 TD laterals. the Yosts are only 18600'.


Bobbie Farmer
03/22/17 08:15:57AM @bobbie-farmer:

This  month the Great Scott. ..some are still getting top dollar to Lease with 17%..


Philip Brutz
03/24/17 10:17:42AM @philip-brutz:

YANOSIK A 2H, 4H


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bo  boboski
03/26/17 05:59:05PM @bo-boboski:

The Yanosiks are on McBurney rd. there's room for one of those wells to be a really long one.


Jeff S
03/27/17 03:28:11PM @jeff-s:

Has anyone heard what type of payments per acre these super laterals like Purple Hayes is paying in the current market? I know it depends on royalty %, just looking for a rough estimate.


John57
03/27/17 06:40:35PM @john57:

Anywhere from $700 to $1,000 an acre after deductions.


Jeff S
03/28/17 07:54:29AM @jeff-s:

Thanks John.


David Cain
03/27/17 06:41:05PM @david-cain:

Jeff,

I don't know about royalty payment amounts but the 4Q2016 numbers are out and the Purple Hayes produced the most oil of any Ohio well for the second quarter in a row.  75,000 barrels of oil and 500,000+mcf during the quarter.  It only took about 60 days to produce the same amount in Q3 as it did in all of Q4 so there has been some decline.


Jeff S
03/28/17 07:54:06AM @jeff-s:

Thanks David. Hey did you ever get re-leased with anybody. Would think Antero is your best bet now.


David Cain
03/28/17 11:33:17AM @david-cain:

Jeff S,

I used the law firm KWGD and just signed a lease a couple weeks ago.  I ended up signing with Eclipse - $2,500 per acre in years 1 and 2 guaranteed and 17% no cost royalty holds me for 5 years.  Eclipse has 90 days to check the title and make payment, so I am keeping my fingers crossed.  

I did receive a verbal offer of $5,000 per acre and 20% net royalty from Antero (I don't know if that was for 5 or 8 years).  I didn't like the net royalty and they would not move off of that.  But it was nice to have both companies wanting the same acreage.  I think they are both trying to tie up as much acreage in the township as they can.  You and your neighbors are in a good location.  And I would think Antero would want to keep as much of that Warrior South acreage in tact as they can.  

Maybe I will see you during turkey season.  We could talk some more then.

Good Luck,

Dave


Rob Rotz
03/28/17 12:10:43PM @rob-rotz:

holy crap.. you got a good deal from eclipse


David Cain
03/28/17 12:31:50PM @david-cain:

Rob,

I think someone else on here posted that they are getting $1,200 per year with 4 years guaranteed and 17% no cost royalty for a total 8 year term from Eclipse.  I think that offer is very similar to the one I accepted.  It would just depend on when you get drilled as to which would be a little better.  


scott peterson2
03/28/17 12:49:52PM @scott-peterson2:

That's what I got Rob, $1,250 per acre guaranteed payment yearly for 4 years so in the end $5,000 acre. 8 year lease if not HBP and they want to keep it, payment would be $1,250 acre for every year up to 8. 17% no cost royalty.


Jeff S
03/28/17 12:32:28PM @jeff-s:

Dave,

Thanks for sharing. Antero will have to buy your lease to use my acreage and the neighbor across the street. All bargaining  chips I suppose since Eclipse has no acreage but yours on our side of Barker Rd and they are letting leases go on the west side of Barker where Rob is at.


Jeff S
03/31/17 11:05:04AM @jeff-s:

Hi David,

I have been pondering why Antero would play hardball with your acreage when it is clearly surrounded by Antero leases.  If you don't mind me asking, did you give them the opportunity  to match or better the offer from Eclipse?


David Cain
03/31/17 11:52:49AM @david-cain:

Jeff,

Yes, I did tell Antero about my offer from Eclipse.  Their best offer was the $5,000 upfront and 20% net royalty (again I don't know if that was for 5 or 8 years).  They tried to convince me that 20% net from Antero would be more than 17% no cost from Eclipse since Antero gets better prices for their product.  I have no way of knowing if that would be true or not.  But based on everything I have heard from multiple sources I am more comfortable with the no cost royalty even if it is a lower percentage.

I tried to negotiate further to get 18% gross or $7,000 signing from Antero and they did not respond back before I had to give an answer to Eclipse.

Dave


Jeff S
04/05/17 09:43:13AM @jeff-s:

Can anybody explain to me the difference between a no cost royalty  and gross royalty? I was under the impression with a 20% gross royalty they could not take out  any additional expenses but I am know hearing they can get you to share the transport costs??? So does this mean a 17% no cost royalty is better then 20% gross (which is what I have). Indecently the Antero rep told my buddy that they are not offering no cost leases to anybody. Antero is working our area hard to get us to re-sign, they called my buddy twice in 5 days.


David Cain
04/05/17 10:11:49AM @david-cain:

jeff-s

I don't fully understand this either.  But I think there are a lot of gross leases out there that the O&G are taking deductions from.  If there isn't a market enhancement clause in a gross lease then it seems they are taking out deductions for that.  If you have a "gross at the well head" clause then they are taking out deductions.  For what it is worth, I was told by Boone Ellis, from Turner Oil and Gas (who works for Antero) that the Rex leases did allow for deductions.  I think O&G companies for the most part are taking out deductions and then making the landowner go back and prove otherwise.  I think this could apply to "gross" or "no cost".  It just depends on the O&G company.  I think you would need to talk to an attorney to get a good interpretation. And even then, they may give you the correct legal answer but the O&G companies might not follow.  I would ask Antero to cover the cost of attorney's fees on any addendum they ask you to sign since they are the ones trying to make the changes.  I would also talk to your neighbors and some of the larger land owners (Noah Yoder has 200+ acres) in the Warrior South to see if you can band together to get what you want.  I am not saying Antero is bad, actually I think they are pretty decent when compared to the other O&G companies.  But they are concerned with their interests, not the land owners.

Thanks,

Dave Cain


Jeff S
04/05/17 10:40:24AM @jeff-s:

Dave,

It was Noah that was telling me about it. He knows some people on the Hall well. I have been told we had a great lease but it does not sound that great now.


David Allen Lilly
03/27/17 06:46:45PM @david-allen-lilly:

I just talked to Michelle Yanosik last week about this, she told me that Eclipse is going to drill that area from the Fritz or one of the other pads Eclipse already has in the area.

Who knows, Eclipse wears me out keeping up with them.


bo  boboski
03/27/17 07:38:55PM @bo-boboski:

I can see that happening. Heard the rig was going to the Fritz after the Miller pad. They could drill sse. and go thru the Yanosiks from that pad.


scott peterson2
03/27/17 08:26:26PM @scott-peterson2:

Eclipse has big plans in our area.


bo  boboski
03/29/17 03:03:54PM @bo-boboski:

They setting that rig  up today on the Frank Miller?


bo  boboski
03/31/17 03:57:49PM @bo-boboski:

Yea, the derrick is up on the Frank Miller pad. Eclipse is clearing for the Nelson pad on Grape Hollow Rd.  They have big plans for Millwood & wills twps. , maybe bringing in a 2nd rig to the area?


Bobbie Farmer
03/31/17 04:01:13PM @bobbie-farmer:

Great news ...


John57
04/03/17 10:42:59AM @john57:

Any idea what wells are going where?  Well locator site still show both Yost, Great Scott and Outlaw all located down by Miller's.


bo  boboski
04/03/17 04:30:08PM @bo-boboski:

Word is ; they will drill the great Scott,The outlaw and the Yost wells N.Ne. from the Miller pad. They will be drilling under most of the Yost and Scott properties,thus naming them after the biggest landowners. Something new. They still may later set a rig on the Yost pad and drill S.se. There will be a 2nd Outlaw, drilled from a new pad off Grape Hollow rd. going N.ne. under mostly the Nelson property. also they are reported to be drilling the newly permitted  Yanosik wells S.se. from the Fritz pad.  Sounds like they are leaning towards using their existing pads as much as possible to drill even the newer wells. Also talk is they will set up on the Law this summer to drill S.Se. towards Salesville. Looks like Eclipse will be here for quite a while. maybe even a 2nd rig?


John57
04/04/17 06:32:36AM @john57:

How can they drill all four wells from the Miller pad?  That's almost 1,400 acres which would be limited by the Purple Hayes and the two Scott wells already listed as being drilled.


bo  boboski
04/04/17 03:46:53PM @bo-boboski:

Each long lateral covers about 700+ acres. not very wide,just long. they reach the interstate.with the purple Hayes, there will be at least 4  3.5 mile long laterals all bottoming out up by I-70 just short of the s-bridge on Bridgewater rd.  The wellbores are on ODNR's map,but Eclipse still hasn't released the platmaps. I'm not sure yet if the 2nd Outlaw well will be long too.


bo  boboski
04/05/17 07:38:39PM @bo-boboski:

The ODNR map now shows the 2 Yanosik wells drilled from the Fritz pad, going well under the town of Quaker City.almost 24,000 ft. total depth.


bo  boboski
04/06/17 03:47:38PM @bo-boboski:

I see Eclipse just got a permit to drill a well on the Finneran pad. They were there once and drilled a few verticle wells,no laterals. I think they were wanting to go under the interstate but that may not have panned out. Maybe this well will go SouthSE. ? maybe another long one?


bo  boboski
04/06/17 08:09:52PM @bo-boboski:

The could still drill those Finneran wells northNW, but without I-70 lease,they would have to be only a mile,or so long.


David Allen Lilly
04/05/17 09:17:56AM @david-allen-lilly:

A second rig is coming. Eclipse is telling me that they will not pay me any further land bonuses due to the fact that they will hold us by production prior to July of this year.

They tell me they are putting together 3 units to be drilled from the same pad which I believe will be located off of Greenlawn Road which is what East Main St. in Quaker City turns into.

There is no way they are producing from this as yet undeveloped pad, the trick will be a legal determination of "held by production" as per my lease terms and state law.

I will be seeing our attorney soon to discuss this.

I'd rather have royalties than land bonus but I hate to get this close and fall just short of a great deal of money, especially due to the fact that Eclipse drug its' feet in negotiations with me. Three and a half weeks ago we had a verbal agreement. The land man told me we were waiting on paperwork for the first week or so. 

I had information become available to me which started a sinking feeling that something was up, confirmed by the next two weeks of phone calls not being returned.

Word came to me on Monday of this week telling me the new and latest position of Eclipse.

I think this is where the second rig comes in, they will need one if they are going to do what they are telling me to do.

I told the land man that at this point one of three things is going to happen:

1) Eclipse will not get us "held by production" and they will cut me a check for six figures.

2) Eclipse will drill and produce us in satisfaction of the "held by production" lease terms and laws of this state.

3) We will go to a forced pooling hearing failing 1 and 2 because my negotiations with them on this matter are permanently over, and I will roll my dice with the ODNR. 

They better hope there are no delays or problems getting it "held by production".


Rob Rotz
04/05/17 10:28:29AM @rob-rotz:

DAL,

any idea what side of Greenlawn they plan to drill ?


Jeff S
04/05/17 10:44:41AM @jeff-s:

Rob,

If you look on the ODNR site the bottom hole ends right around Greenlawn so I guess it is going north/west of greenlawn.


David Allen Lilly
04/06/17 08:15:37PM @david-allen-lilly:

The wells are from three units drilled on the same pad and I believe they will be larger units. I am not sure but I think two units will run northwest and the other southeast but don't quote me on that.


Philip Brutz
04/05/17 12:04:52PM @philip-brutz:

Do you know which property they are putting the pad on?


David Allen Lilly
04/05/17 04:19:03PM @david-allen-lilly:

It looks like they are working by Stephens ? Property ? Not sure where the actual pad will go.


David Allen Lilly
04/13/17 07:12:02PM @david-allen-lilly:

Wondering if there is a problem on the Miller pad, last few times I went by it there didn't appear to be any pipe in the carraige or whatever the thing is called.

I swear that at some angles it looks like the rig is tilting similar to what happened at the Hayes pad a few years ago when they had to take the rig down and redo the subsurface.


Karen49
04/20/17 02:37:38PM @karen49:

Hi! Say, I was wondering what is going on with Great Scott Well 3h especially after this last post. Haven't seen any new information posted. Anyone know? Thanks!


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