Replies to This Discussion

Permalink Reply by Marcus Grayson on April 19, 2012 at 6:29pm

CHK similarly changed their offer in Columbiana county back in March.  That price change coincided with the ending of the first quarter and likely a condition of their JV with Total S.A.  It's possible that they legitimately don't like an area as much as they once did, but the most likely scenario (at least regarding CHK) is that they've spent a fortune acquiring acreage and they simply don't need more.  They'll take it, but at a discount.  

As far as the other companies in Belmont (notably Hess & XOM) they want results on the acreage they have first before jumping too far in.  If most of the county is in dry gas then they will have to wait for better prices before these wells will be economical.  Hess, through their JV with CNX, has quite a bit of land in the liquids window and might want to prove that up first.  If Belmont is mostly dry gas then the value of the county will be diminished...for now.  Once prices rebound that dry window will be very, very valuable.  

Permalink Reply by Finnbear on April 20, 2012 at 12:01am

I know of two other companies leasing in the area who are also offering $4k/acre.

Permalink Reply by deron on April 22, 2012 at 12:36am

Chesapeake is still at 5300 at 20 percent in Warren township with their lease.  It is very tempting after this long wait.

Permalink Reply by bville on April 22, 2012 at 7:45am

that's alot better than $4000

Permalink Reply by Finnbear on April 23, 2012 at 6:35pm

Which lease are they offering at that price? If it is their standard boilerplate lease, there is no way I'd sign it at that price or any price close.

Permalink Reply by Finnbear on April 23, 2012 at 10:22pm

Without reading the whole lease and addendum, it is impossible to say if it is good, bad, or otherwise.

Permalink Reply by Fun fun fun on April 27, 2012 at 4:53pm

Is anybody currently leasing in Smith township in Belmont co. ?. I heard Hess is canceling outstanding lease offers.

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