Latest offer from CX-Energy

Did anyone attend the meeting on 10/14/2014 in Foxburg at the Allegheny Grill? I'm curious as to what everyone thinks about the lease offer that was presented.

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Replies to This Discussion

Permalink Reply by John Soroka on October 15, 2014 at 6:10pm

The offer:  $1500 ac. 15% net amount royalty.  Unit size: 1280 ac. 6-yr. initial, 6-yr. auto extension.  No real protection if landowner doesn't want drill pad on property.  Drill pad offer $20,000.  Those are the basics.

Permalink Reply by Mike Stevens on October 15, 2014 at 6:14pm
So what did you think? Are you going to have their lease reviewed by an independent attorney?
Permalink Reply by John Soroka on October 15, 2014 at 6:20pm

Not for me at this time. They claim to have financial backers interested in the area and that they have 2000 ac. signed in Richland Twp.  The 6 yr. terms they state are because of a lack of transmission infrastructure.

Permalink Reply by james on October 15, 2014 at 6:41pm
What company is Cx working with on this offer? Thanks
Permalink Reply by John Soroka on October 15, 2014 at 6:44pm

They would not reveal that information.

Permalink Reply by james on October 15, 2014 at 6:48pm
Ok, is this offer available to all clarion county landowners or just certain townships?
Permalink Reply by John Soroka on October 15, 2014 at 6:51pm

People like myself responded to a mailing announcing their time in Foxburg.  I have no idea how many people were contacted by mail.  They were there from 9-5.

Permalink Reply by james on October 15, 2014 at 7:00pm
Ok, thanks.
Permalink Reply by Matthew Williams on October 16, 2014 at 9:05am

The company hasn't sent out a mailer but I know ACROYALTIES is in the area. 

Permalink Reply by Matthew Williams on October 16, 2014 at 9:02am

That seems a little off if they wouldn't disclose who they are working with. 

Permalink Reply by Janice L. Hancharick on October 16, 2014 at 11:33am

Not really.  Oft-times the non-disclosure is necessary due to restraints put on by the company making the offer.  Competition among OGM companies is keen.  For example If joint ventures (JV's) are on the horizon between companies that are considering sharing the cost of drilling ... you know that stuff that happens after leasing ... behind the scenes naming of who is involved could drive up costs for both OGM firms, and leave fewer dollars on the table for landowners.  Which would you rather have happen?

CX knows landowners want solid, safe, fair deals.  Knowing the name of the company now may be a want, but it's not a need.  That same company may still be trying to pick off single landowners using bargain basement offers and a lot of sweet talk.  

Of course the name will become available before owners' final John Hancock is needed.

Permalink Reply by james on October 16, 2014 at 11:39am
Janice, I know you work with CX, are they working with any companies in other counties that are leasing right now? Mainly, Venango, and Mercer counties?

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