Lease Offers in Harrison County

Updated November 8, 2011

This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.

As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.

Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in

Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.

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Replies to This Discussion

Permalink Reply by FXEF on July 29, 2011 at 7:51am

Josh,

If this Marquette Exploration is the company you are dealing with, it is not likely they have the experience to explore and develop the Marcellus/Utica to its potential; unless they have joint venture partner with drilling experience.   

Permalink Reply by Josh on July 29, 2011 at 8:16am
I am hearing Exxon might aquire these leases...
Permalink Reply by scott jackovitch on July 29, 2011 at 8:25am

I have been told that marquette is working for Exxon.  That would kind of make sense to me. Exxon is as big as it gets in the oil industry. With the Buell well rumored to be producing up to 2500 barrels of oil per day why not.

Permalink Reply by Finnbear on August 2, 2011 at 3:06am
XTO Energy is the subsidiary of Exxon who is coming to Ohio to drill the Utica and Marcellus.
Permalink Reply by Nate on July 29, 2011 at 6:55am
You don't have to own rigs to be a driller. Many companies contract drilling rigs.
Permalink Reply by Mark Allen on July 29, 2011 at 8:54am

who had the foresight to see this coming?  I attended the meeting in Wintersville,wow is all I can say.  Lease addendums were not very good, 1280ACRE UNITS,limited pugh clause,non guarantee.  This was just another cherry pick.  How does Marquette buy this when they are rumored to be acquired?

 

The lease is the most important,limit your formations to the Utica,reserve the rest for future plays.

Would you sell all your coal or just the seam to be mined?

Thank pancakes and only sell the ones with the maple flavoring,hold[reserve] the butter and most of the stack

 

Permalink Reply by Nate on July 29, 2011 at 9:13am
These groups talk of limiting formations but when chk says no they fold up like a cheap suitcase (F&M)
Permalink Reply by Al Cramblett on July 30, 2011 at 1:15am
If one were to determine  net worth based on the content of the posts being made on this website, one could easily come to the conclusion that there are millionaires among us. Moreover, I think Nate would be in the top 1%!
Permalink Reply by Mark Allen on July 30, 2011 at 1:55am

how's life Al, their r movements in Harrison and Guernsey, Jefferson and Carroll as we all know.  Why do you think theseattorneys are leading landowners to take money over lease language?

Greed is strange character, in the long run when money is the driving force proper planing and ethics get left out.

 

Would you sign a lease that gives away all depths?

Would you sign a lease with a 1280 unit max or a 640unit max?

Would you sign a lease that was not guaranteed[exception title failure]?

 

Curious for your thoughts as well as all others.

Permalink Reply by AT on July 30, 2011 at 2:06am
Those were 3 of the biggest issues I had with the $3700/ac Marquette deal revealed in Wintersville earlier in the week, among other issues.
Permalink Reply by Al Cramblett on July 30, 2011 at 2:09am
Mark, my beliefs, strategy, and intent were and are well documented on this website since day one. Please see my post below.
Permalink Reply by Nate on July 30, 2011 at 4:52am
Ha ha, thanks Al, you're making me blush. Feel free to pass on the leesville drilling info to anyone interested.

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