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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I agree Nelson,

 

I too am beginning to deal with Eclipse and there are some things i don't like that need to be improved.  I'm not saying there a bad company just that there not offering much up front.  

Also, i would like to know if anyone has used "Iron Will Energy" for consulting purposes and if so what was your experience?  Apparently, they are suppose to be very good at negotiating a very strong lease for the land owner at a very reasonable rate.  I think they have their own lawyers as well.

Hi Mark,

I live in Noble County near Seneca Lake and own 13.3 acres. I just found out yesterday that there is a small group forming here and evidently was approached by Fossil Creek with a much better offer. My neighbor stopped by to talk to me about it and showed me the sample contract. From what he said they were offering this group (that I soon hope to be a part of) 1750/acre and 15% royalties. Doesn't sound bad at all, but I did a little research on Fossil and found them to be involved in a lawsuit, although it may not be their fault...it still makes me a wee bit leery about them.

http://law.justia.com/cases/oklahoma/court-of-appeals-civil/2010/46...

Fossil Creek is a lease agent for Gulfport Energy.

Does this mean they are brokers or flippers? Sorry for my ingnorance.....I'm still learning the terminology.

 

 

Brokers. They will get a cut for bringing leases to Gulfport.
Thanks Finnbear......do you think it is better to not deal with brokers....I'm assuming that there are some land owners out there that have. Are there any benefits?
Sounds like a weak offer & they were probably planning on flipping that lease for a big profit. From what I have been learning a broker/flipper is not the way to go. My land is near you by the way over by Salesville.

Would you know if this relationship means that if 1: I sign a lease with FCEC, 2: They are successful in building a tract of properties, 3: They will pay the lease value promptly and in accordance with terms of the lease, and 4: They (and/or) Gulfport will begin exploratory drilling.

At a meeting of Noble County landowners (Townships around Seneca Lake, FCEC stated they ( or Gulfport???) started drilling in the vicinity (South of 285?).  Has anyone else signed with them?

Can't say for sure...I'm just going by what I was told yesterday. I'm trying to get contact information for  one of the guys in the group.....I don't want to miss this next meeting. I'm about 5 miles east of 285....my property sits off of S.R 574 (the damn road). I'm less than a half a mile from the lake just on the other side of Briar Hill....between Briar Hill and County Rd 65 (Jim Ball Rd).

Teresa,

If the meeting u describe was last Thurs, my brother in law was there..it was over by the Lake and Fossil Creek was there.  We have 150 or so acres in Wayne and have had many approaches..in fact four months ago FCEC only offered $50/acre/yr for 5 yrs on a lease we could not cozy up to.  This offer is like 180 degrees from the earlier one ($1750/acre & 15% royalty).  They seem serious.  Have heard of higher amounts like 2000-2400 and 18% but no solid deals.    

What was also put out at that meeting is that FCEC (broker? or driller?) have started drilling South of O285..I know the name of the landowner but will respect his privacy here...FCEC says they are involved so that is a serious plus.  Also put out as info is that the Utica under Wayne Tsp is "Wet" which means a more rich mix of product under there..another plus.  Oil.  Gas..several types.

Negatives: need to see ur lease and comment with ur attorney,  do you have mineral rights..is that a big deal?  So you sign a lease..when and how do you get paid..do they just hold it to see what happens and you are tied up if another company comes along with a better offer? I just don't have info on who has been successful so its hard to judge what will work.

FCEC is looking for contiguous acreage, ..there is some pressure on the group to sign..we have not seen the lease (or I haven't..I think my relative has) and have not done due diligence on it..so that makes me nervous.  But we don't want to lose out if a large tract is put together.  Has anyone worked with FCEC within their newfound generosity ($1750 vs $50)?  Are they affiliated with a bigger O&G Co?

Don't know if this helps, but you get the picture on the pros and cons..if the group needs to meet again (soon!) to assess these issues we should..I'll come...all the way from Maine if needed before signing!

Mark, my neighbor went to this meeting and he gave me a copy of the sample lease.....still need to study it and attend the next meeting. I've got it in .pdf format now on my other computer....if I can, I will send it to you via pm or if it's okay with you I can send it via your personal email. 

I've been doing a lot of reading since finding out about this yesterday and I'm not sure if I like the broker/flipper type middleman idea. From what I'm reading on this site is that FCEC in a leasing agent for Gulfport and it doesn't look to be beneficial for us land owners....considering we are sitting on utica shale which appears to be more valuable than marcellus....I think.  I know I'm just a small pea in the pod with only 13 acres....but my neighbor was told, "we may be sitting on a sweet spot" for whatever it's worth and I think I want a piece of the pie if this is the case. 

 

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