 By Alvin Engelke
alvinengelke@hotmail.com
The main topic in the Creston area reflects discussions everywhere concerning the financial mess caused by Fannie Mae, Freddie Mac, the two government companies that, along with their buddies at Countrywide, et al and their buddies in the congress most of the latter who are now advisors to Barak Hussein Obama is now coming to the local scene.
Cattlemen learned that, maybe, they could sell 900 lb animals for 80 cents which, of course, is "making money in reverse". The price of corn is back in the $4 range instead of the "proposed" $10/bushel range.
A number of Wirt County residents attended the West Virginia Farm Bureau resolutions committee meeting at Jackson's Mill. At the annual meeting in November the main topics will be laid out for the upcoming legislative session. One of the key items involves private property rights and water. The high price of energy and, as a result, fertilizer, has had a major, negative impact on agriculture.
John Morris has been busy putting up hay in the Creston area. Haymaking activities were interrupted by a much needed rain.
Norville McCune, age 89 of Orma, passed away while cutting weeds near his home. A veteran of World War II, he has several relatives and a host of friends in the Creston area. When up in his 80s he could work circles around men young enough to be his great-grandchildren.
Leaves area beginning to turn and a beautiful show of fall colours should be soon in order.
The price of local Penn grade crude oil fell $8.75/bbl to $71.50/bbl which is about half of the top price earlier this year.
The price of natural gas fell to below $7/mcf but most Creston area production has been shut in since September 16.
It was recently learned that in a fifty foot section of either the Huron or Marcellus shale, both of which are, it would seem, present at Creston, there is, in each of them, recoverable reserves of 117 million cubic feet of natural gas/acre which, at current prices would be just under $1 million. It was learned that in much of West Virginia the Marcellus, the current hot pay zone, ranges from 100' to 150' thick.
The fall in petroleum prices at the wholesale level and the drop of prices of publicly traded shares has had a rather drastic impact. Chesapeake announced that they had sold 25% of their entire Marcellus play as well as significant interests in various other fields over the country. In addition there had been another production payment sale as well as quite a bit of hedging of the prices of natural gas sold. It will be interesting to see if the hedge is reflected in the royalties paid by the firm.
The company also announced that the CEO, Aubrey McClendon, who had been paling around with the Big Boss down at the Mouth of the Elk, got caught on a margin call that he could not cover and was forced to sell almost all of his stock in the company. The stock had fallen to below $20/share which was not enough to cover the margin rules.
It was reported that Equitable Gas is going to do a 3-D seismic study of Chesapeake's (former?) Rainbow Prospect situate along the Roane/Jackson line running from down around Gay up to somewhere near the Wirt County line.
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