Natural Gas Activity Erie County

Pennsylvania Mineral Rights Erie County, PA
1

Seneca Farms is a 198 acre parcel just north of Route 8 at Phillipsville and Page Rd.

The interest in the gas well is in the process of being acquired by a major gas energy company

and recently large parcels of land have been acquired, mainly the 300+ acre Erie County Airport

and an adjacent parcel with talk of pipeline activity in those areas. This is brand new activity

and leads to signs that major plans for gas development is coming to Erie County.

Is anyone familiar with more information about activity in this area.

2

So far I have not seen any horizontal well permits for Erie County. The nearest activity is in Crawford County with 3 wells being developed around Pymatuning Lake/Cochranton area.

3

Source: Indepth Exploration, LLC dated: May 13, 2012 “Utica Shale will be the largest oil and gas discovery in American History. All major oil and gas companies have come together for the first time in many decades to develop the largest rock formation known in America.” “Industry Partners on the Adameck Prospect #1 This is a multi-zone program that was developed in the NW part of PA. This is the most active leasing and drilling area in the US. Several major oil and gas companies are in this area to develop the Marcellus Shale and Utica Shale.” “The Adameck #1 multi-zone project was developed by Indepth’s Partner in PA, Utica Resources… Experts believe there are Trillions of Cubic Feet of Gas and Billions of barrels of oil in the Utica Shale and Utica Resources is actively leasing acreage in NW PA for future drilling programs…” “Indepth Exploration industry partner is Utica Resources and they are actively leasing acreage in NW PA for Utica Shale drilling programs. Utica Resources is a longtime PA oil and gas operator with vast experience in Operations, Drilling and Leasehold acquisition. Our first well, the Adameck #1 will be drilled in Erie County, PA to test several zones.”

JSIMS said:

So far I have not seen any horizontal well permits for Erie County. The nearest activity is in Crawford County with 3 wells being developed around Pymatuning Lake/Cochranton area.

4

Adameck#1 started drilling April 15. A 7200' test well to test for the first time in Erngie County, Pa. levels to the Utica and beyond. I was at the site of the drilling and met with Ronald Coleman, Pres/Ceo of Utica Resources

said they were at 4,200' feet and had already hit a good supply of natural gas. fact that it was not a "dry hole" is always comforting when someone is "wildcatting". They expect to hit the Utica in 24 hours and this

will be an historic day....the next 3000' is expected to be slower because of statis conditons. History is in the making as we await the results of the drilling in the next couple of weeks........

5

George,

I hope you hit it big time!. Most of the activity is south of us . All of the maps that I have seen show that the Point Pleasant formation ends in northern Crawford Co. and it seems that all the majors want to drill and frack in that lower part of the Utica.

6

I visited the well site of Adameck#1 after they went through the "Utica", did not notice a lot of excitement, they mentioned a couple of good gas "spikes" but they are playing there cards close to the vest and not a lot of

information is forthcoming. If you "google" Duane Stephens- video Adameck#1 there are some interesting comments made without realizing the microphone was on. Hope all went well for them because they

spent a lot of effort on that well.

JSIMS said:

George,

I hope you hit it big time!. Most of the activity is south of us . All of the maps that I have seen show that the Point Pleasant formation ends in northern Crawford Co. and it seems that all the majors want to drill and frack in that lower part of the Utica.

7

The company that owns Adameck#1 have leased over 2000 acres in that area. They claim they are happy with

the results of the vertical drilling test well that was 7200' feet and have plans to drill more wells. I agree that

the Utica/Point Pleasant has been more in demand but this company is going to have a head-start in Erie County and I wish them lots of luck.

JSIMS said:

George,

I hope you hit it big time!. Most of the activity is south of us . All of the maps that I have seen show that the Point Pleasant formation ends in northern Crawford Co. and it seems that all the majors want to drill and frack in that lower part of the Utica.

8

The front page article of Erie Times News,Sunday, June 2,2013-"Driller Probes Uticaon

Ronald Coleman,CEO,Utica Resources, "I'm excited, I'll say that much and that I like what I see." after seeing

results of drilling........the game is on in the Utica in Erie County....

George M. Vietze said:

The company that owns Adameck#1 have leased over 2000 acres in that area. They claim they are happy with

the results of the vertical drilling test well that was 7200' feet and have plans to drill more wells. I agree that

the Utica/Point Pleasant has been more in demand but this company is going to have a head-start in Erie County and I wish them lots of luck.

JSIMS said:

George,

I hope you hit it big time!. Most of the activity is south of us . All of the maps that I have seen show that the Point Pleasant formation ends in northern Crawford Co. and it seems that all the majors want to drill and frack in that lower part of the Utica.

9



George M. Vietze said:

The company that owns Adameck#1 have leased over 2000 acres in that area. They claim they are happy with

the results of the vertical drilling test well that was 7200' feet and have plans to drill more wells. I agree that

the Utica/Point Pleasant has been more in demand but this company is going to have a head-start in Erie County and I wish them lots of luck.

JSIMS said:

George,

I hope you hit it big time!. Most of the activity is south of us . All of the maps that I have seen show that the Point Pleasant formation ends in northern Crawford Co. and it seems that all the majors want to drill and frack in that lower part of the Utica.

10

Hello George,

This is Duane Stephens with Indepth Exploration. You have some interesting comments.

I might mention this to you George. Indepth Exploration owns the entire Adameck well. Ron

Coleman is the Operator with a small override we gave him. Just so everyone knows the facts

Hope you are well

George M. Vietze said:

The front page article of Erie Times News,Sunday, June 2,2013-"Driller Probes Uticaon

Ronald Coleman,CEO,Utica Resources, "I'm excited, I'll say that much and that I like what I see." after seeing

results of drilling........the game is on in the Utica in Erie County....

George M. Vietze said:

The company that owns Adameck#1 have leased over 2000 acres in that area. They claim they are happy with

the results of the vertical drilling test well that was 7200' feet and have plans to drill more wells. I agree that

the Utica/Point Pleasant has been more in demand but this company is going to have a head-start in Erie County and I wish them lots of luck.

JSIMS said:

George,

I hope you hit it big time!. Most of the activity is south of us . All of the maps that I have seen show that the Point Pleasant formation ends in northern Crawford Co. and it seems that all the majors want to drill and frack in that lower part of the Utica.

11

Duane, I am aware that Indepth Exploration is the owner of the well and Utica Resources is the operator only.

It was my understanding the last time we spoke, that Ron Coleman was your Pennsylvania contact and that I understood that to mean that I was to work with Ron. I called but have not received a call. We want to work with you on the 270 acre property 4.5 miles from Adameck#1 that has gas distribution lines onsite, both

high pressure and low pressure lines. Call me at 814-464-7800 or email at gmvietze@aol.com

George Vietze

Duane Stephens said:

Hello George,

This is Duane Stephens with Indepth Exploration. You have some interesting comments.

I might mention this to you George. Indepth Exploration owns the entire Adameck well. Ron

Coleman is the Operator with a small override we gave him. Just so everyone knows the facts

Hope you are well

George M. Vietze said:

The front page article of Erie Times News,Sunday, June 2,2013-"Driller Probes Uticaon

Ronald Coleman,CEO,Utica Resources, "I'm excited, I'll say that much and that I like what I see." after seeing

results of drilling........the game is on in the Utica in Erie County....

George M. Vietze said:

The company that owns Adameck#1 have leased over 2000 acres in that area. They claim they are happy with

the results of the vertical drilling test well that was 7200' feet and have plans to drill more wells. I agree that

the Utica/Point Pleasant has been more in demand but this company is going to have a head-start in Erie County and I wish them lots of luck.

JSIMS said:

George,

I hope you hit it big time!. Most of the activity is south of us . All of the maps that I have seen show that the Point Pleasant formation ends in northern Crawford Co. and it seems that all the majors want to drill and frack in that lower part of the Utica.

12

It seems Adameck #1 is on hold and has been put on “Inactive” status at the DEP. A dispute between the driller of the well, Utica Resources, and the owner of the well, Indepth Exploration, has placed a hold on that well.

SLC Energy, a gas and oil company with connections in California and Nevada, www.slcenergy.com has posted on their website a list of projects: Adameck #2, 3, 4, 5, Afton 1, 2, 3, Chylinski 2, 3, 4, May 1, Hinkler 1, and Turner 1.

These projects are in Greenfield, Venango, and Greene Townships, Erie County, Pennsylvania. So far no permits have been issued. The results of the testing by Weatherford have given the participants in this activity a reason to move forward with plans to lease more land in this area and it looks like plans to drill more wells are in the works.

Our group who own 270 acres at Phillipsville Road and Page Road in Wattsburg are watching with interest the new activity. EmKey Energy, LLC, a local Erie company, purchased $34 million of the Norse Companies distribution lines along with natural gas properties and purchased the gas lease on our property along with 20+ properties in the Wattsburg area. EmKey is a midstream gas distribution company that owns natural gas properties and leases and builds natural gas distribution lines in New York and Pennsylvania.

This new activity seems to be the beginning of the development of the Utica and Upper Devonian play that lies beneath Erie County. The new Erie Port project planned by the Erie County Economic Development will play a major role in expanding the shipping of natural gas and byproducts to the large eastern markets and overseas.

A major part of that expansion will happen in Erie County, Pennsylvania.

13

SLC Energy has announced on their Facebook account www.facebook.com/slcenergy that the first of four wells should be permitted in a couple of weeks. The projects listed on their web site www.slcenergy.com under “projects” list 10+ projects located in Erie County, Pennsylvania, Greenfield Township, Venango Township and Green Township. This is the first significant Utica activity in the Utica in Erie County, Pennsylvania since the drilling of Adameck#1, a 7,200’ test well.

14

Things in the natural gas arena in Erie County have been fairly quiet. Emkey Energy, LLC, an Erie, Pennsylvania midstream company, has completed a $10 million natural gas processing plant in Union City. EmKey Energy continues to install natural gas lines in northwest Pennsylvania. Empire Energy US and Stedman Energy, Inc. own many of the existing wells in Erie County. Stedman Energy is in the process of obtaining a permit for a well in Loweville, Pennsylvania, which is located near Wattsburg in the area of Route 8 and Highway 89. They are drilling approximately 2800 feet.

SLC Energy, LLC has a permit in the Albion area and claim they will soon be active in Erie County. Their personnel have been involved in drilling Adameck #1, a 7200-foot test well that is currently in the process of an internal dispute with the owner of the well and the driller and put in inactive status. Erie County, Pennsylvania seems to be north of the Point Pleasant and Marcellus area which is being targeted currently. The Upper Devonian (Rhinestreet Shale) is above the Marcellus, is less expensive to drill, easier to frack, and may be a target for further exploration while they wait for the code to the Utica.