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...

 

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