Jefferson County, OH: Oil & Natural Gas Update
Posted June 18, 2019
David and Tina Antoline live on a family farm in Jefferson County, Ohio, that his father bought back in the 1950s. When his dad purchased the land, he made sure he also received the mineral rights as part of the deal. That proved to be a very smart and valuable decision.
In the 2000s, as oil and natural gas development increased in Jefferson County, the Antolines began to get a lot of offers for their mineral rights (you can read more about their story here). Ultimately, the couple made the decision to sell part of their mineral rights to Gateway Royalty—a partnership they were comfortable with that opened up a world of financial opportunities.
The Antolines are not alone. Many other Jefferson County landowners have realized the value of their mineral rights as oil and natural gas production has expanded in the area over the past several decades. Here’s a look at the current state of oil and gas activity in Jefferson County, and a quick glimpse at the outlook for the future.
Jefferson County remains one of the state’s top producers of natural gas
Most of the activity we’re seeing right now from oil and gas companies in Jefferson County is in the southern region (generally south of Steubenville). There are some wells operating in the northern areas of the county—mostly by Encino Energy—but the majority of the activity is in the south. And we expect that trend to continue.
Primarily what we’re currently seeing in the county is companies focused on natural gas production (as opposed to oil production). According to ShaleXP.com, Jefferson County actually ranks number three in the state of Ohio when it comes to gas production (behind only Belmont County and Monroe County). The county accounts for nearly 13% of the state’s entire natural gas production.
The Business Journal recently reported that, for the first quarter of 2019, the largest producing gas well in the Utica was located in Jefferson County—it was operated by Ascent Resources and produced 3.264 billion cubic feet of gas. The Business Journal also notes that overall production from Utica wells in the first quarter of 2019 (for both oil and gas) is up over the same period in 2018.
Based on these results, it’s reasonable to predict that activity from oil and gas companies will remain steady in Jefferson County for the foreseeable future. ShaleXp data shows the county currently has 826 permits on file, 121 active wells, and 7 operators in the area.
Do you own mineral rights in Jefferson County?
You may live in an area of Jefferson County where oil and gas development has been taking place. Like the Antolines, you may own mineral rights to your property and probably have received offers from different companies in the mail.
So what’s your best option? That depends on a number of different factors—including what’s happening with oil & gas production in your local area, and your personal financial situation. Generally, landowners make the decision to sell their minerals or royalties for a few key reasons.
If you’re a Jefferson County landowner considering selling your mineral rights, drop us a line at Gateway Royalty. We’re happy to have a straightforward conversation with you, providing any information we can to help you make the best decision.