I'm new to "gomarcellusshale", as well as new to this business. We have a 152 acre farm with "Clinton" gas wells which supply our needs.
We've been approached by Fossil Creek Energy Corp (FCEC) for $50/acre, 12.5% Royalty, and $10,000 if a well is drilled. We are sitting on the Utica Strata. I've carefully read the lease and am very suspicious of the terms. We are consulting attorneys. I don't see any members from Noble County..and some interesting notes from Guernsey which lead me to suspect the FCEC lease. Can they broker a lease after signing "cheap"?
We have news of ARTEX Oil offering leases in our County, they're out of Marietta. Any comment on FCEC, ARTEX, and my suspicions would be welcomed!
Wow, this discussion has been really helpful. I appreciate everyone's willingness to share information here! I have questions that may show my ignorance! Okay:
Since they haven't answered yet I'll take a shot.
1. The sign on bonus is paid within 90 days(supposed to be) of you signing the contract with the O&G company or leasing agent.
2. Leases are usually renewed every 3 to 5 years. Sometimes 10 years, depends on contract.
3. You will be paid royalties if a well is drilled in the "unit" that contains some or all of your property. This unit is usually 640 acres to 1000 acres total. You get a % based on the amount of acreage you have in the unit.
4. Your property is still probably desirable. "Landlocked" is a broad term. Why is it landlocked in your opinion?
Hope that helps.
TP.. your close to correct .. all the permits I've seen in Ohio for Horz Utica wells, the bores go N30°W .. which is the same as S30°E .. so along this line depending where the drilling pad is located (middle or one of the ends) and I've been told that is due to them wanting to cross the shale formation at a 90° angle.
I've attached a typical map permit and this also speaks to the dilution of royalties .. and this is only a 225 acre drilling unit..