Things really heated up on MI in spring of 2010 when an Encana wildcat well had strong results (few MMCF/Day initially) and the spring state lease auction exceeded the previous 80 years worth of lease auctions. The "gold rush" boom was on and landmen swarmed the northern half of the lower peninsula. Those were exciting times. Sadly, it collapsed only a few short months later.
what happened? good question.
1. all leasing stopped (primary players where Chesapeake Energy et al and Encana), low and behold it was later discovered that CHK and ENA had colluded to manipulate market pricing. They are both being investigated by the DOJ and MI AG for possible anti-trust violations.
2. Devon partnered with China and was able to explore over the past 12 months, but are plugging and exiting now. finding gas - but only care about oil.
in current market, big boys want oil and little boys (local) can't afford cost of E&P using modern unconventional drilling (deep, horizontal, fracking). So the market and activity in MI has greatly cooled. As the article notes, something will likely come when/if prices and supply/demand changes.
Anyway, here is an article that provides a simplistic overview today (not mentioning my points from above):
Michigan Gas/Oil Exploration Activity
some excerpts of interest:
Michigan has been awaiting a boom in natural gas production, but a few stars will have to align for that to happen.
In May 2010, the Michigan Department of Natural Resources set a record by auctioning off 118,000 acres of state land in 22 counties for $178 million to companies interested in oil and gas fracking.
Schwank said it doesn't make economic sense for drilling companies to go into full production now when gas prices are low at about $3 per thousand cubic feet.
But only 52 permits for high-volume, horizontal hydraulic fracturing have been issued so far by the DEQ, with six permits pending. Of those 52, five wells are actively producing; the rest are either capped, under development or exploratory wells, said Hal Fitch, DEQ's chief of office of oil, gas and minerals.
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wilson
living in AZ with minerals in MI (had lease canceled by CHK in 2010)