The longest production well is the Mangun unit and it looks weaker than we all expected. Averaging 59 bbl/day isn't exactly setting the world on fire. In Mahoning county the Geatches unit had no commercial production during the 79 days that it was operational. They recovered 758 bbl during Completion and flow back but it has yet to actually produce anything. For a $15,000,000 investment that one sure looks like a dud.
Bucey looks weak too, averaging 40 bbl/day. Buell looks great for gas but that's not exactly the liquids bonanza that CHK promised. Still, these were the first wells and I'm confident that the numbers will improve as they figure out the sweet spots and get better at completing these wells.
You got a good lease with a spud fee. There are people who signed and got NO spud fee. If the going rate was $30,000 and someone got $15,000 then they got hosed. However, the original question was whether or not $15,000 was fair. Not having access to every lease that CHK was offering at the time led me to believe that the $15,000 was appropriate. It's not up to me or anyone else on this forum to negotiate for the landowners on here. A question was asked and I gave my answer. Guys like Bill just need someone to bitch at because their lives are so bloody boring. If you want to negotiate a good deal then get a lawyer like every other sensible person in Ohio. If you want to rely on this forum for all of the information that you'll use to make your decision then you're doomed. You, Utica Shale, have always seemed like a bright and fairminded individual. I have made clear that I'm in the business. I have never hidden from that fact and I find it appalling that such a fact would preclude me from making conversation with people.
In our lease that was from a lawyer group it states 25,000.00 for 15 acres allowed for a pad, and 3 grand per acre after that if agreed to by the landowner. My property would not be easy to set a pad on but others that signed might be but I bet those people saw the bonus and % gross. When I saw this I thought 15 acres for 25 thousand wasn't the best deal.
No we signed higher 5850 with 2.48% to lawyer. We had no addendums at all just exhibit A reading as a shorter lease. It was like looking at two leases with the first being the nasty lease and as an example where the clause was titled "shut in" in the nasty lease it would say 5 dollars per acre forever than exhibit A would have it's own clause "shut in" and than would say amount of 5 is now 25 and can be shut or held for no longer than 36 months. It went like that for about 50% of the clauses. Some clauses are talking about things that didn't need a change like payment schedule, payment method (direct deposit or check), etc.so not every clause is revised in exhibit A.
Basically you only need to read exhibit A when reading our lease for the big issues unless you want to know your parcel number. Our lease had "top lease" removed in exhibit A on purpose which I thought was weird.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]