I am or was, in the Friendsville group from Susquehanna county. Our group signed with Fortuna which I guess is now Talisman. (Although I never got notice of this). We signed for $5500.oo per acre and 15%. They gave us an option to take half the bonus money in Dec of 2009 and the rest in Jan of 2010. For tax purposes. I choose to take it all at once just because I thought the company may go belly up before I got a payment. My accountant says it worked out pretty close no matter how I did it. But that's my circumstances.
Being that I don't live in Pa. I really haven't paid much attention since we signed our lease with them. I'm just now wondering about the royalties etc. I can't find anything about them drilling in Susquehanna county. So I'm in limbo.
Anyone else know what's going on? Anybody from that group that can tell me what's up?
We received a lower bonus money payment and a larger royalty payment from Talisman. No payment possible until 2012 because of budgetary constraints. Thanks for your post. Good luck.
A few comments...
(1) The Friendsville lease is $5500/acre and 20% (not 15%) royalty.
(2) Unless you were in the highest of tax brackets, you would have been better off splitting your bonus payments across 2 years for tax purposes. The more money that you keep out of the higher tax brackets the better.
(3) The "name change" from Fortuna to Talisman USA was well-publicized. The parent company Talisman Energy, Inc (TLM) is rated 5-stars (the highest) by Morningstar. Little chance of the company going "belly up, although it is a bit strapped for cash at this point in time.
(4) There is a plethora of information on the internet regarding drilling in Susquehanna County. If you prefer printed paper, I would contact The Daily Review in Towanda, PA for a subscription to "Northeast Driller"...it will keep you up-to-date.
I guess I'll have to re-read my lease. I thought it was 15%. Do you know what happened to the Friendsville group? Did it disban?
I did ask my accountant to fiqure out both ways for tax purposes and she said it would not be that significant a difference in taxes either way I took it. All at once or split over two years. So, I took it all at once. I had to rely on a proffesional since I had no idea which way to go. And at that time, not knowing about the company called "fortuna" I had to make an educated guess with her help.
The name change may have been well publicized, but I didn't recieve any correspondence from them and since I don't live in that area I didn't read about it in your local papers. I've been away for a year or so and I had limited access to the internet. I just started reading it recently, but I will subscribe to the Notheast Driller. Thanks for that. Still it concerns me that I didn't recieve anything from Talisman stating that they bought out fortuna.
I was hoping this is where the Friendsville group would be helping out. It may be time to console with an attorney to allieviate my fears.
As I mentioned in my previous reply to you, it was a name change from Fortuna to Talisman USA by Talisman Energy, Inc. No one was "bought out". I'm surprised your accountant did not help you out with identifying Talisman Energy as the parent of Fortuna.
As far as I know, the Friendsville Group (FG) is no longer active after it secured the ground-breaking lease for its members. However, several FG members have used the services of Warren Trainor, who was the attorney negotiating the FG lease.
Oh! Name change? I should read more carefully. I stand corrected. Thank you.
We discussed briefly where the money was coming from. But, she was only interested in how I wanted to pay taxes on it, and if I trusted that the money would be there for the 2nd paymen,t if I split it into two years. In my lack of knowledge, confidence and skepticism, I chose it all at once. She did fiqure it both ways and the difference in tax was acceptable to us. So I live with that.
Also. Thanks for the info on the FG and the attorney.
Be aware, I am forgetting the exact terms, but a contract like this is similar to a RE deed. Unitl the lessee pays or signs the lease, they can backout.
4500 is great in this era. I know of some 2000 offers in even a better area than you.