Was told that the drilling industry is going to hit the fan after the first of the year. I guess things are suppose to get crazy. Water hauling is going to take off. Maybe I will be working more than 20 hrs. a week.
I'm not sure you will see the numbers like last January due to gas prices. We have spent our 2012 budget so things generally do slow down at this time of year. Expect it to start up again in 2013. Hope you guys have another big year.
A lot of leases will be up within the next year or two. Once the pipelines are complete you'll see an increase in drilling but also capping those wells to lock those properties that are coming due to the end of the lease. It will be busy for the haulers, truckers, pipe guys etc. but for the money coming from the wells you'll see a slow down..... therre haven't been any large increase in permitting applications so it may start happening later in the year......should be interesting to say the least.
I heard that Chesapeake sold 30%+ of their existing leases in Sullivan County to a Japanese Firm. Speculation is that the Japanese won't let the leases expire, so some ground breaking will start in 2013.
Add to all of that, the fact that CHK is taking deductions out of royalty payments, for gathering/transportation, and doing this on leases that clearly state they can not do that.
They are takeing over 40% of royalty payment for this. Multply that by all the royalty payments...$$$$$$$$$$
Think about the hit that will have on them when the courts decide they have to pay the land owners back. We are talking about Millions , posibly Billions by the time it's settled.
CHK seems to be running with a lot of smoke and mirrors when it comes to there finances.
They have been a dirty operation since the start, low balling landowners with leases, running bare bones with saftey on their rigs, and the CEO is one of the arrogant &$%@#! I have ever seen.... They sold a big part of their other plays to the state owned Chinese gas company and are all smoke and mirrors. The whole company has been run like a Ponzi scheme.... I'd like to see a lot of thier upper management serve some hard time.....
EOG is active in Bradford county, Talisman only has one rig going in the area, Chesapeake is selling a lot of their leases and lord knows what those snakes are up too. A lot of leases up this year, especially in our area.....should be interesting.