I've heard that KWGD has completed a few deals in Guernsey County over the past year or two. For those that have signed their lease, how much did the actual lease change when compared to the proposed lease that they provide when you join their group? Leasing is increasing again this fall and there is still a lot of acreage in this play that do not have leases. Also, it looks like Gulfport is backing out of paying their lease bonus on time and I've been told that KWGD completed a few deals with them and am wandering if the KWGD deal is actually falling apart with Gulfport? Thanks.
I signed the KWGD lease with Gulfport last October and we receive our bonus within the 120 day time period.
These were the changes to the original lease:
Lease set back reduced from 1,000 feet to 500 feet from a structure (whether habitable or inhabitable).
There is a 5 year renewal instead of a 3 year renewal and the renewal is at 110% of the original signing bonus.
The spud fee was reduced to $15,000 but includes all other damages for crops, timber and subsurface and above surface damages incurred by drilling, as opposed to a flat spud fee without any additional damages.
I too signed the KWGD lease with Gulfport last Oct. and received payment in a timely fashion. I'm pretty well convinced that if you sign a lease with any gas and oil company on your own you are out to get screwed. They will cherry pick the properties they want and cast the rest aside and there is little you can do about it. There is power in numbers and KWGD definately has their act together in forming groups. They are good people.
Two things to keep in mind about the KWGD final lease; you don't have to sign it if it is unacceptable to you, and they hold all signed leases at their office untill you have been paid. Also, whoever takes the lease package must take all of the included properties as long as there is a clear title. They are professional and upfront.
I think the leases that are falling apart with Gulfport were those that were signed without KWGD representation.
Is KWGD still signing folks with Gulfport? Guernsey county Westland Township