Leases Offered in Noble County

I'm new to "gomarcellusshale", as well as new to this business.  We have a 152 acre farm with "Clinton" gas wells which supply our needs.

We've been approached by Fossil Creek Energy Corp (FCEC) for $50/acre, 12.5% Royalty, and $10,000 if a well is drilled.  We are sitting on the Utica Strata.  I've carefully read the lease and am very suspicious of the terms.  We are consulting attorneys.  I don't see any members from Noble County..and some interesting notes from Guernsey which lead me to suspect the FCEC lease.  Can they broker a lease after signing "cheap"?

We have news of ARTEX Oil offering leases in our County, they're out of Marietta.  Any comment on FCEC, ARTEX, and my suspicions would be welcomed!

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Replies to This Discussion

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 7, 2011 at 2:14pm
Sandy Twp in Tusc.  The when I'm not sure of, I got that piece of info about three months ago, so sometime before then.  It was told to me by one of the guys on the rig.
Permalink Reply by Paul Martinelli on July 7, 2011 at 4:36pm
ouch....Sandy is 2 townships north of me......I suspect all the gas/oil over the years seep out of the sandy formations up there and has collected all in Goshen township :)
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 7, 2011 at 10:52pm
Prices are still holding firm at or above $2,000/acre so obviously there isn't much panic on the Titanic.
RandallPermalink Reply by Randall on July 13, 2011 at 11:31am

Hi Marcus, are you positive it was dry?  Any idea if they fracked the Utica?   That would have been pretty expensive, so they may not have, but could've just logged and/or cored the Utica to get some data on it.  It might not have been their primary target.    I don't think the Utica is normally going to produce much (esp oil) without a frack

 

Shale Guy

Permalink Reply by Paul Martinelli on July 13, 2011 at 2:24pm
How can you say that you don't believe Sierra knows what they are doing....what information is this based on?   What constitutes a legit driller?
Permalink Reply by Paul Martinelli on July 13, 2011 at 3:19pm

Des,   thanks for the info.   I agree, something doesn't add up.

 

My interest is in the fact that  Sierra now owns the deep rights (below clinton)

on my leased land, and I belive they want to drill near by soon.

 

Hearing that they are, well, "not a good respecting company", puts a damper on my expectations in the future.

Permalink Reply by Christiane Marshall on July 12, 2011 at 4:43pm
Hi, Just found this forum today. We're in Noble County. I noticed a few others and talk of starting a group for Noble. I can't seem to find it. Can someone direct me? Anyone in Noble do any business with any companies? A friend of ours is a geologist and she said there is marcellus and Utica under Noble County. Mentioning this because someone here said he was told there wasn't.
Permalink Reply by Mark Curry on July 12, 2011 at 6:15pm

Hi Christiane!  This thread is about as close to a Noble County Group as there is under Ohio Landowners..Best Price is another.  We have asked the WebMaster to start a Noble County Group..hasn't happened yet..will keep trying!.  There is a lot of info out there on Companies, Brokers, "PUGH's", etc. The best advice you'll find is to get to know where the money is coming from and don't jump too quickly.  If you visit the Ohio Department of Natural Resources, you can view maps of Marcellus and Utica fields

  http://ohiodnr.com/tabid/23415/default.aspx

We're in Northern Noble, Wayne Township..we're told it's primarily Utica.  There is a lot of variation out there and its hard to tell who has leased and who has not and for what terms..hence the need for a group that communicates.  On our property, we have three of us investigating the various offers and trying to separate out the facts and develop contacts in Noble, and in Cambridge before moving out.  Offers range from $50/acre all the way up to $2,450, and 12.5% up to 18% for royalties.  Share with us whatever you have!  Maybe we'll get that Group!

Permalink Reply by KYGeologist on July 13, 2011 at 11:22am

Christine,

Yes the Marcellus Shale is present in Noble County but fairly thin and typically not an ideal target area. 

-Will

Permalink Reply by michael moschella on July 12, 2011 at 6:39pm
Mark this is way to LOW by any stretch. I will be leasing in that area shortly and the starting sign-up starts at 1500 for a 5 year lease 12.5 % royalty. I liked to ask one question is your shallow production holding your deep rights to the Utica. Please don;t take any offer below that 1500
RandallPermalink Reply by Randall on July 13, 2011 at 10:54am

Mark and other Ohio landowners, we are professional oil industry people who work for large operators in the Marcellus play.    We value properties everyday as part of our work there, deciding where to pick up leases, and where not to.    We can work up an independent, professional report on the value of Utica reserves under your leases, and determine what the maximum offer is that the operator could reasonably be expected to pay you.  This increases your leverage in negotiations, serving notice that you are well-informed on the value of your property.    There is no obligation to sign anything, we don't ask for your royalty, and our fee is a low % of your bonus.   

 

Anyone interested, please friend me

 

thanks

 

Shale Guy

 

 

Permalink Reply by Finnbear on July 13, 2011 at 5:33pm
And for this low % do you negotiate the lease with the operator?

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