Has anyone heard of this group just wanting to lease shallow gas and oil rights?
400$ an acre/12.5% royalties?
Thanks Scott Austin
I was also contacted by Union Land Resources regarding a shallow gas well lease.
I believe the person said they were representing Chesapeake Energy.
My property (25 acres) is in Clarion county, PA - Richland township.
As noted above, it seems like a fairly low offer?
Any thoughts or advice would be appreciated as I am new to leasing.
Shallow rights (surface to about 3 or 4000 feet) have typically been paid at $10-$15/acre in pennsylvania, and at 12.5%. These wells cost $160K to $225K to drill, frac, and produce. With reserves on the order of 200 to 350 MMCF, and payout at least 6 or 7 years now due to nat. gas below $4/mcf, the vast majority of these types of wells are uneconomic to drill & produce. Compared to a marcellus well which has reserves on order of 4.5 to 7 BCF, the high volume makes these kinds of wells much more economic, even at low nat. gas prices, just because of the sheer volumes of gas.