Butler County lease's

Shell is making the rounds in Cherry Twp and northern Butler County. I have seen there lease and to me it looks like they are offering $1,500  and 15%. The lease was  boilerplate!  Does anyone have any more details? I know they have an office in Butler now.  Is there any other Drillers that have been active as of late in this area?

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Replies to This Discussion

Permalink Reply by randall gottus on July 13, 2011 at 10:36pm
...yes, Sean Farnham at 601 540 5936.  address is.. 115 WEST CUNNINGHAM ST., BUTLER, PA. 16001
Permalink Reply by Terry W. on July 18, 2011 at 8:39am

Does anybody have any names/phone numbers of oil/gas attorneys in

Butler?  Phone book does not contain much info at all.

Thanks

Permalink Reply by DKinPA on July 18, 2011 at 2:38pm

Thomas,  I would highly recommend Andrea Parenti from Dillon, McCandless, King, Coulter and Graham.  She is an O&G lease expert and she is who we use. 

Phone #  724-283-2200

Permalink Reply by Terry W. on July 18, 2011 at 2:51pm

Thanks, will let you know of outcome.

By the way, EnergyUS did not work out.

$2500 vs $3,000 from Shell.

They had a termination clause for the lessor

Have obtained a heck of a lot of info from this site, and other sites.

If I get kicked in the butt, it will be my own fault.

Thanks for all info

Permalink Reply by randall gottus on July 18, 2011 at 10:56pm
...yes, I am hearing that there are two attorneys in the Butler area that have worked with alot of the landowners there, and are highly recommended and have alot of experience. They both are O&G lease experts... Ronald W Coyer @ 724 794 2929, and the other one is Thomas J May @ 724 282 3141.
Permalink Reply by tomcats58 on July 21, 2011 at 10:28am
Shell is currently in Butler offering $3000 per and 15% gross lease. I heard some went ahead and signed. money is still low and % is definitely too low. the threat from landmen is always sign now or lose the deal when their bumper should read "sign now so I don't have to pay you more later and give you better language"
Permalink Reply by Jon on July 21, 2011 at 4:41pm
I think that they're just going after the people who need money. If the sky is $5,750 I wouldn't necessarily expect it to hit that, but I can see it going to $4,000 anyway.
Permalink Reply by PRESTON D Joswiak on July 21, 2011 at 4:58pm
Since Shell has increased their offer to $3,000/ 15%  my feelings are to go for it. I signed a lease with 25 addendum's that I feel  make the $3,000 worth while.   Yes you will get more by waiting some day, but I think the sooner a well is drilled the up front money will be a non factor. The Clean 15% is worth a 20% with wellhead and costs taken out anyday in my book!!  Good Luck to everyone with your lease's
Permalink Reply by DKinPA on July 22, 2011 at 10:07am

Preston, I am glad you are happy with your lease!

Just remember, its not a first come first served business......they don't drill in the order that people sign leases, there are many factors in play.  One scenario is:  If you were a gas company and had two 1280 acre units to drill and both units had acreage that was going expire soon.  The average renewal for unit A is $3000 and the average renewal for unit B is $5000.  Which unit do you think they will drill first and guarantee they are HBP?   It would cost 2.5 million more to drill unit A and renew unit B than to let unit A wait and begin drilling unit B. 

As landowners we need to think ahead a little, be patient and analyze EVERYTHING!  There is more at stake than you may realize right now.....just look at how things have progressed in the Bradford area and the impact it has had both negatively and positively.

Permalink Reply by PRESTON D Joswiak on July 22, 2011 at 10:58am
It is true that a lot of activity is going on now. The gas and oil has been there for millions of years and two weeks or years is not going to change that.  When you look at the fact that the goverment is going to get at least 33% and the fact it will take at least 3 years for the area to be productive. I feel the money in hand will be more to my advantage. If drill sooner fine!  The contract is worth more than the up front money in the long run.  I have found that what make more sense to you or I does not work in the Corporate world.
Permalink Reply by randall gottus on July 22, 2011 at 8:06pm

Preston....yes, there are alot of factors at play here..the one that concerns me is FORCED POOLING, and how Pa. will define/re-define it over time...and will the word BONUS and ADDENDUMS soon disappear because of it?...or can I say the word NEVER?  ...Many things going on here, and more to come. There are alot of resources [Bloomberg, Seeking Alpha, etc.] that offer some important information/direction/insights that can change the landscape overnight! I do not have the answers, and am paranoid of anyone who says they do. But your point is a good one...and that there are alot of moving parts to this, and you mentioned one of them.

Permalink Reply by Jon on August 8, 2011 at 12:56pm
It's tough to tell what will happen to the property. If it will just sit there for a while or if will be included in a well's drilling area. Here's a question though. Out of the wells that are producing in butler county how much does a lease holder get on average an acre per month? if the wells do produce enough to be useful then maybe negotiating the royalties is worth more than the upfront fee.

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