Atlas Raises Capital to Accelerate Marcellus Development

Atlas announces today that it has priced a public offering of 1.6 million common units representing Class B limited liability company interests. Atlas Energy intends to use the net proceeds from this offering to repay a portion of its outstanding balance under its revolving credit facility to create additional borrowing capacity to fund additional acreage acquisitions and accelerated development of the Marcellus Shale as well as further development of its other drilling programs and lease acquisition activities

Full Story at http://biz.yahoo.com/bw/080515/20080515006354.html?.v=1

Statewide TV call-in program looks at natural gas rush in Pennsylvania

With residents across the state asking questions about the Marcellus Shale formation, natural gas exploration, mineral rights leasing and a number of other associated issues, WPSU-TV is responding with a one-hour live call-in program. At 7 p.m. on Thursday, May 22, WPSU-TV in central Pennsylvania will present "Pennsylvania’s Gas Rush." This live call-in program will also be simulcast statewide on The Pennsylvania Cable Network (PCN) and Web cast via http://wpsu.org/gasrush/.

Full Story http://live.psu.edu/story/30836

Drillbits

Will Your Bluestone Be Next?

Why not? PA Legislators are pushing for passage of HB 1373 which would amend the state's right to "enumerate coal, natural gas, coal bed methane, oil, and other valuable minerals as those subjects to be valued and assessed for the purposes of taxation"... IN THE GROUND!

"The action is coming in the midst of a rush of companies drilling for natural gas in the area. A layer of rock called Marcellus shale, known for more than 100 years to contain gas, is now being seen as ripe for the picking because of improved recovery technology. Years ago, the layer of rock wasn't seen as economical to extract. Marcellus shale appears to be the thickest in Pennsylvania. James A. Hercik, Fayette County's chief assessor, recently sent a letter to (Rep. Tim) Mahoney urging action on changing the law to make taxation of gas legal, citing a loss of revenue that increases every month."

In other words...Hey, there's something of value out there and we need to get our grubby little hands on it ASAP. After all, it has to be shared with the people! Nevermind that the region will benefit tremendously from the influx of capital and high paying jobs for many years to come and nevermind that the landowners who own it will pay federal and state income taxes on it when, and if, it ever produces.

What happens if your wells don't come in? Think they'll pay you back?

Full Story http://www.heraldstandard.com/site/index.cfm?newsid=19683190&BRD=2280&PAG=461&dept_id=565757&rfi=8

Quest Resource Ventures into Marcellus

From Q1 2008 Conf call. .....Quest Resource develops early-stage and/or unconventional plays through its wholly-owned New Ventures group. The group draws on the expertise of Quest Resource's technical team to pursue higher risk/higher return potential exploration projects. New Ventures holds approximately 22,000 net undeveloped acres in southwest Pennsylvania (Somerset County) that is prospective for the Marcellus Shale. The group has drilled and completed and is testing its first well on the acreage and is encouraged by the early results. New Ventures will continue to evaluate the test results and is considering additional development of the acreage.

Full Story http://money.cnn.com/news/newsfeeds/articles/marketwire/0396742.htm

Unbridled finally Unbridled

Since first announcing its plans for a private placement financing on March 18, 2008, Unbridled Energy Corporation has been precluded from issuing a press release on its field operations due to US SEC restrictions on the dissemination of news. With the successful closing of the placement, Unbridled is pleased to provide an update on its Appalachian Basin properties in the USA.

Marcellus Shale Play in Pennsylvania and West Virginia-

Unbridled has selected a land acquisition company to begin leasing in Pennsylvania (PA) and New York in strategic areas. Despite the land costs increasing to over $2,000/acre and the average Net Revenue Interest now between 80% and 82%, the Company believes that economic wells can be drilled. Obviously, many other oil and gas companies that are leasing and drilling test wells feel the same way. The strategy for Unbridled to compete in this intense market includes: 1) joint venturing with companies who wish to lease acreage where Unbridled would drill to earn and operate; and 2) joint venturing with companies that hold existing acreage and desire a partner to offset the risks inherent in new plays or desire to earn their acreage by drilling wells. The Company has identified a partner in southern PA and northern West Virginia. Development plans are being discussed.Unbridled is also in late-stage joint venture negotiations with another operator on acreage in northern PA. The Company plans to use a combination of vertical and horizontal wells depending on local geology and other factors. Based on recent public data, the anticipated production results from the Marcellus are 0.5 to 1.5 MMscf/d for vertical wells and 1 to 4 MMscf/d for horizontal wells. These rates are similar to those exhibited in the prolific Fayetteville, Barnett, and Woodford Shales. The gas content for the Marcellus is also in the range of these prolific shales................Regarding the Marcellus play, we're in late-stage negotiations, with two operators who hold existing acreage, to form joint ventures in West Virginia and Pennsylvania. This is exciting since it's not too often you can participate in a new large shale play in your own backyard."

Full Story www.marketwire.com/mw/release.do?id=854940

Leasing Update

I spent some time over the weekend updating my compilation of all of the lease offers I've seen from news articles, discussion forums and landowner groups. Prices continue to be highest in the northern most parts of the play. To the southwest and into West Virgina, prices head lower though, interestingly, royalties are somewhat higher.

In the north, bonuses are highest along the east-central New York-Pennsylvania border with 5 year leases in the $2,500 range and 15% royalties being the norm. Extension options are running 3-5 years and usually for the price of the intial term.

In the middle of the play, southwestern PA, royalties are in the 15-18% range with bonuses now at $1,000/acre and rising. Notwithstanding the speculator bids of $50-$250, Atlas, at $500, is at the low end while Chesapeake and Range are battling it out at the high. Two weeks ago, the majors were generally about $250 lower.

In the south, West Virginia landowners are seeing offers in the $300 range and royalties at the traditional 12.5% with a few at 15%.

XTO/Whitmar Agrees to $2411/acre for NY Landowner Group

A coalition of 300 landowners holding 37,000 acres in the Binghamton, NY area accepted joint venture partners XTO Energy and Whitmar Exploration's offer of $2,411 per acre for a 5 year lease with a 5 year option for an additional $2,411. Royalties are set at 15%.

Full Story http://www.pressconnects.com/apps/pbcs.dll/article?AID=/20080512/NEWS01/805120348&referrer=FRONTPAGECAROUSEL