Oil company seeks leases 2.13

Written by David Green.

Monday afternoon wasn’t the first time Marion Mannschreck accepted payment for oil and gas drilling rights on his farmland east of Morenci. Other oil companies have sought the hidden treasure in the past.

But he was willing to sign the documents once again and gladly accept the $50 an acre payment. And better yet, if a productive well is established on his property, Mannschreck will receive the customary one-eighth value of oil produced.

Mannschreck’s land added a few more acres onto the total 33,000 acres leased  in southern Michigan by Continental Resources of Enid, Okla.

Richard Straeter, vice president of Continental’s Illinois Division, knows others have tried, but he also knows there are reasons why the new effort can succeed: improved technology, increased demand, rising prices.

Straeter also knows a lot of oil has been taken from the ground not so far away from this area, and he’s hoping additional pockets are waiting to be tapped here.

Since its discovery 50 years ago, the Albion-Scipio field—running through Hillsdale, Jackson and Calhoun counties—has produced about 140 million barrels of oil.

“This is our first venture into Michigan,” Straeter said. “We’re in the process of completing our third well.”

The company’s first successful well in Hillsdale County is producing 260 barrels of crude oil a day and a test rate of 310 barrels is planned this month.

A second well produced about 500 gallons an hour during an initial 10-hour flow period. A third well should begin withdrawing oil this month.

Continental is acquiring permits for an additional five wells...

 

  • Front.little Ball
    Fayette's Demetrious Whiteside (left)Skylar Lester attempt to keep the ball from going out of bounds during Morenci's recent basketball tournament for fourth and fifth grade teams. Morenci's Andrew Schmidt stands by.
  • Front.tug
    MORENCI pep rallies generally end with a tug of war. The senior class entry, shown above, did not advance to the finals. Griffin Grieder, Alaina Webster, Kyle Long and Jazmin Smith are shown at the front of the rope, giving it their best effort.
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  • Front.teacher Leading
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  • Front.F.band
    TROMBONISTS Jake Myers (left) and Max Baker perform Friday at the annual Senior Citizens Luncheon at Fayette High School. The National Honor Society and the FFA chapter teamed up to serve a meal to area seniors and to provide musical entertainment. Both the school band and choir performed. Additional photos are on page 7 of this week’s Observer.
  • Front.poles
    MOVING EAST—Utility workers continue their slow progress east along U.S. 20 south of Morenci. New electrical poles are put in place before wiring is moved into place.

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