Wow some huge variences in prices here in same approximate areas? why is that? How could the same Group accept $1000 less than they got 3 months earlier when prices seem to be increaseing & $1900 less than anther group in same Twps in less than a week? does that set the process back?
The difference is in the terms of the lease. The Eclipse deal had several provisions that were very advantageous to the landowners.
Angela you obviously didn't see the anterro lease it is the most landowner friendly I have seen to date! I guarantee thats not the reason.
The Eclipse deal had a commitment to drill within 3 years and guaranteed unitization of all leased land. I believe the Anterro deal was an anomaly because of the Ruble acreage.
Angela think about that It’s that whopping $750/acre more you get if they don’t drill in 3 years that the oil company saves for 3 yrs? So $4750 total for a five year primary term. Or maybe it’s the $5462/acre you get for giving them another FIVE years (instead of 3) or maybe it’s that 19% royalty instead of 21%? not to mention the 4 1/2% Fee
Or maybe that eclipse paid $4,000 & sold in a joint venture for $8,000 a $4,000 net profit & the landowners get shorted again!
They have a deal they were obviously happy with. What do we have? Personally, I would give a little on the bonus in exchange for a commitment to drill.
Very well said Gale, Bottom line as usual we the landowners are responsible for making sure we don't get taken advantage of no matter who we deal with & if the group Attorney only represents the group & not the individual landowner then we better get our own attorney, I know I would be upset it I signed with a group that represented me and the oil company sells 1/2 my lease for twice that amount in 2 weeks! Sure have to wonder if I could have gotten that same deal!
At this point of the game no one should be in a hurry. They have leased thousands of acres and how many drilling rigs are there in Ohio? It will take a while.