Carrizo sells off northern Utica shale holdings for 43 million; includes Ohio Trumbull Co. and Pa. Crawford and Mercer Counties. Reports of about 15,000 acres in all. Buyer not disclosed. CNX also suspends Trumbull Co. drilling at one site.
Things in the Utica appear to be moving to the NE just like the Marcellus did. Shell is building some very large locations and permitting to drill a lot of wells in Forest and Warren Counties. 10 in Mead Warren, 9 Mayburg Forest, 6 Buzzard Swamp Forest, and they are cutting a new huge location in Blue Jay Forest. It looks to me besides vertical core wells they are targeting two Upper Devonian fomrations (probably Rhinestreet and Genesee), Marcellus and Utica. Plus they are going back to their initial locations in the regions and drilling a Utica.
I recall CNX saying they were having some zoning problems on the well they suspended in Trumball. But there are interesting developments. No one appears to be aggressive in testing the Utica Oil window. Plus a number of companies walked away from leases in Western Crawford county and I believe parts of Mercer. The offering rate for shale land is down in PA. I think a number of companies are coming to the realization with the price of gas and the availability of shales it will take a long time to exploit what they have.
What is up with MWE raising force mejure sp? with CNX. Are they running out of cash?
As I understand permitting issues for construction has caused delays which appear to have caused additional delays for construction as everyone has to rejust schedules. But pipeline work is going well from past couple of week when I was in the area; weather has been good too. CNX TUS3 is reported at about 250 or so bbl per day now. Not much, but no word on gas production for this test well. No pipeline connection yet. Ohio is really at the beginning stages for midstream development. Sounds like up in your neck of the woods things are moving along. Likely alot of pad development going on prior to winter. Nobel and CNX are begining to use nat-gas fired rigs, Noble switching from first vertical drilling at first then vertical to just one same rig operation now. Market getting #$%$ now and the up coming election will likely just aggrevate even more. Could be a good time to add to positions.