Leases Offered in Noble County

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!

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Replies to This Discussion

Permalink Reply by scott peterson on August 8, 2011 at 1:01pm
Not positive of total  acreage they have for Guernsey, Noble area group but its in neighborhood of 8,000 - 10,000.
Permalink Reply by Nelson Roe on August 8, 2011 at 2:18pm

Scott,

I just emailed Nate with KWGD today & asked for a ballpark figure of the acreage in Group 5 & your numbers are very close if not even a little on the light side...  I do not understand why people feel the need to trash talk other companies that are out there doing pretty much the same thing that they are doing, or the company they are with is doing.  Everybody is out there right now to make $$$.  Anyone that says otherwise is full of it.  It is up to the individual landowner to do their research & see who they are comfortable in dealing with.  Personally, somebody that constantly trash talks the other companies with minimal (if any) factual data to back it up is going to drive me away from them or the company they are recommending, rather than draw me to them!  & no, KWGD is not a leasing company... they ARE attorneys & Mr. Williams has over 25 years experience in O & G Law & Mr. Vaughan has very high commendations in Corporate, Real Estate & Oil & Gas Law.  They may not know every detail of the actual drilling process, but I bet they have a pretty good idea.  Also, who is it that handles the issues for the drilling companies, or the landowners, when issues arise down the road?  Unless there is a crappy "arbritration" clause in the lease... It will be an attorney, or group of attorneys.  So why do some feel the need to talk down about the attorney groups?  I can understand sharing information, or what one has heard through the grapevine, or even opinions, but at least have something to back it up when sharing the info or opinions.  & if it is an opinion please state it as such!  If I have a gut instinct that tells me to stay away from a company, I am probably going to tell anyone that asks that is is just my gut feeling... I will not try to make it seem like the gospel!  So please, share the info, share the opinions, but do so in a way that allows others to make their own unbiased opinions.

Permalink Reply by Michael Lawrence on August 8, 2011 at 2:33pm

and they have sold nothing....

 

Permalink Reply by Nelson Roe on August 10, 2011 at 7:06am
Nothing except for the acreage represented in their 4 previous groups which have all successfully negotiated deals...
Permalink Reply by Jon Henderson on August 8, 2011 at 2:08pm

Sure KWGD is making money on us, but to me 4% is a fair price to pay for a well written lease that protects me as a landowner.

 

What company do you work for, and you still haven't answered my last question about "what companies are pulling out in 2 weeks?"

 

These guys come highly recommended from others I know. I don't work for them, and I don't get a dime from them, but to me they seem to be upfront about their intentions. Unlike others on this site.

Permalink Reply by Michael Lawrence on August 8, 2011 at 2:34pm

with the price of oil dropping below 80$ a barrell... all of them real soon... today it reached 78$  who is telling you this

 

Permalink Reply by scott peterson on August 8, 2011 at 2:15pm
Michael Lawrence,  Aka Michael Maag Aka Mick Maag....pretty interesting legal issues on the docket in Guernsey & Tusc Counties. And you are questioning a highly regarded law firms integrity......please!
Permalink Reply by Nelson Roe on August 8, 2011 at 2:24pm
A company that can justify the drilling... CHK?  Gulfport??  64 other drilling companies... After KWGD forms the group & has the acreage documented, they send out the group info to 66 drilling companies to start the bidding process.  I believe that at least 2 of the previous 4 groups that KWGD has negotiated for has ended up signing with CHK.  Do you consider them to be a company that Might be able to justify the drilling?
Permalink Reply by Christiane Marshall on July 29, 2011 at 2:20pm
I really appreciate this discussion and everyone's willingness to answer questions. I have one more. When you are using the term "landman" what do you mean? Thanks!
Permalink Reply by Private KeepOut on July 29, 2011 at 10:50pm
Christiane, a landman is an independent contractor representing a specific O&G Co.
Permalink Reply by scott peterson on July 30, 2011 at 1:16am
Can also represent no one in particular as in the case of many who are lease flippers.
Permalink Reply by Private KeepOut on July 30, 2011 at 2:54am
Luckily I haven't had the opportunity to meet one of those varmints yet! :-)

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