Nothing Huge - Just Touching Base

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Nothing Huge - Just Touching Base

Postby imgasious » Wed Oct 07, 2009 2:40 pm

10.07.09 Coalition Update
Nothing Huge – Just Touching Base

Hi All. It’s Brian Conover from the steering committee. There’s nothing huge to report at this time - just want to touch base and share a little information with you.

What’s The Latest On Our Coalition?
The maps . . . Along with our lease being complete, our maps are now done and letters are confirmed to have been sent out by our attorneys to numerous gas companies. I was able to see one of our computer generated maps the other night. It is a sharp looking document. It reveals that our coalition lands run mostly North and South (between the major pipelines) with a wide block of land around the middle. Our coalition maps were printed by our attorney group and will be used for marketing purposes to those gas companies that inquire about our coalition. We do not have the liberty to use them publically by posting them at a meeting or on our website – sorry.

New members . . . Additional coalition members continue to trickle in. We are comfortably over the 160,000 acre mark. We will happily take on additional land that rests within the range of current coalition members, yet we are not taking on new areas or “orphan properties.” If you haven’t signed up with us and wonder if you are in our coalition range, feel free to email us at chenangogas@gmail.com. Since the beginning of our coalition 16 months ago, our steering committee understood the options we have available of either going out to bid as one big block or collecting into separate bidding units. We are not blindly committed to one course of action and will make course adjustments if needed to get the best results for our coalition.

Contact from gas companies . . . Our “bidding stage” is yet in its infancy. Coalition maps will be sent to interested companies who will then take the time to look them over to determine if we are the region in which they want to invest their time, effort and money. This is not an instant process with a “buy it now” button located on our website. I anticipate a gap of time in this process that could test our patience. Believe me; we will let you know as things begin heating up.


What’s The Latest In Our State & Nation?
The SGEIS . . . Our long-awaited, over 800 page document from the DEC has finally made it out to the public. So far, most comments on our forum and from other NY gas coalitions give the SGEIS positive reviews. It is an informative document with a great deal of geological and technical information on the Marcellus and Utica shales that accompany the regulatory statements outlining the future drilling process in upstate NY and in the NYC watershed regions. There are people who will not be happy apart from a complete ban on drilling/fracing for natural gas in our state. That’s reason enough why you need to participate in the comment period. Please take a minute and go to the NYS DEC website and link through the Marcellus drilling section to leave a comment regarding the SGEIS and the need to make it final this year.

Other NY Coalition Activity . . . If you keep your ear to the ground you will hear rumblings of potential deals with the NY coalitions to our South. Because they are between us and the big pipelines, we may not be the next coalition in line for a deal but we shouldn't be far behind our friends below us on the map. Good news for them is always good news for us.

Natural Gas Prices . . . The spot and futures prices for natural gas continue to rise. At last look, the futures price for natural gas was hovering around the $5.000 mark. And with our coldest months around the corner, it looks like things will continue to climb from there. The higher the gas prices, the more the profit margin for gas companies. And the greater the profit margin for gas companies, the more they invest in exploration to get more gas. I think you get the picture.

What Offers Can We Expect?
We truly don’t know. We can say with confidence that the petty offers given to our area over the last number of years are unacceptable, however, we have yet to fully grasp the market value for our region with the multiple gas plays that rest beneath us. Pennsylvania has some very impressive production numbers coming out of the Marcellus right now. At this time, our region, especially middle to upper Chenango County, hasn’t had the horizontal drilling exploration in the Marcellus like in PA so as to compare apples to apples with their numbers. We do have cutting samples that show the organic carbon and the thermal maturity of our region of the Marcellus to be quite good. It's good gas, but how much is there? How great is the pressure? The Marcellus ranges from 1,500 ft. - 4,500 ft. below the surface over our coalition range. It is not known how those depths in our area will affect production numbers. We know that the gas below us is good, but we won’t fully know the production rates for our area until the spud comes out of the ground.

As we gain more information, you’ll be the first to hear it from us. You can check our website http://www.cnylandcoalition.org for future updates. Please be kind to Mr. Lasky and avoid calling him about these updates. He and our committee members handle many calls for our coalition. We will uniformly update all in our coalition to make sure you are in the loop.
Until next time. Brian Conover
imgasious
 
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