Recent Offers in the Marcellus Shale

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1. State
2. County
2. Lease Bonus Offer
3. Royalty %
4. Terms (length of the lease)

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Permalink Reply by terry hazlett on September 14, 2009 at 1:21am
Pretty nice Ruby, hopefully it will get things moving again in our neck of the woods! you getting any offers lately? my last was in march or april, pidly bonus but the other parts not to bad! just hate to sign with gas prices so low. good luck Taz
Permalink Reply by Uncle Buck on September 15, 2009 at 4:30am
Full article on the Friendsville group offer at Rigzone. http://www.rigzone.com/news/article.asp?a_id=80288&hmpn=1

They say it may be the most landowner friendly lease to date. Not to mention, some very nice numbers.
Permalink Reply by ROBERT H.DIXON JR. on September 15, 2009 at 7:48am
is anybody entertaining offers from range resources in north sewickley twp., pa and or new sewickley pa
Permalink Reply by Robin Fehrenbach Scala on September 15, 2009 at 12:45pm
New people -- keep in mind:

If you are just hearing about the gas leasing or are just getting your first offers, DO NOT jump on the first lease presented to you. It is common landman tactic to say that there is a deadline ("sign by tomorrow or you will miss the boat") or tell you that if you don't sign they will suck the gas out from under you (not true as stated).

In addition, the first offer by many companies will be EXTREMELY low, because that is how the business works. Many of us have been immersed in this for a year or more, learning everything we can about leasing, leases, drilling, etc. Some have already signed, and others like myself have not yet.

The current HOT areas are now in Northeast PA -- Susquehanna County, Bradford County, Wayne County, and heading into Wyoming and Lackawanna Counties in addition to others. As of Saturday, the hottest verified offer is with Fortuna for $5500. per acre, 20% and 5 years with an option. Good lease terms also.

The point I want to make is that each area will be priced differently and those amounts will change upward as wells are drilled and verified. If you get a lease offer, take your time to check the many online sites and talk to neighbors and friends in the area to see what they were offered or signed for. In addition, the lease terms are the most important of all (even more than the amount per acre or percent of royalties) so have the lease reviewed by someone who KNOWS the business.
Permalink Reply by Robin Fehrenbach Scala on September 16, 2009 at 9:45am
Sign up for this lease offer by going to Chesapeake's new lease offer site:

http://www.askchesapeake.com/Marcellus
Permalink Reply by Judy Duff on September 18, 2009 at 2:56pm
We have one hundred and thirty acres in Friendsville and we were paid $2850 an acre by Range a year ago with 18% royalty for a five year lease. We have recently bought several more properties that add up to 190 more acres and we are negotiating with different companies. All are in the $5500 neighborhood with a 20% royalty. We were originally offered a thousand an acre for our Friendsville property, but we held out until we felt the price had peaked. It did go down for awhile, but obviously if we had held out until now, we would have gotten much more. No one can tell you the right thing to do because it's all a gamble. You might accept an offer and then the lease prices will shoot up or you might hold out and then the gas companies are no longer interested. I tend to think that if you are in an area where they are seeing good production so far, you can hold out for a good price.
Permalink Reply by Judy Duff on September 18, 2009 at 5:43pm
Hi, James. I don't know about "public" public as in posted somewhere or in a record. I just know that word gets around when they do test wells and find more than they expected in an area and the price shoots up. I believe that's what happened in Susquehanna County. Keep your ear to the ground, check sites like this, talk to other people in the area to see what they are hearing, and watch the trends closely. With our original property, we were able to gauge by the interest of the gas companies. For a long time, we were being pursued by several of them and then interest started to wane and they weren't calling or returning our calls as quickly. That's when we knew things had probably peaked, so we took the best deal we could broker, which was one of the highest at that time for that area. Offers then dropped off sharply for a time until we heard that a test well had produced six times more than was expected. Maybe it was just a rumor, but right after that, companies started offering over five thousand with twenty percent royalty. The bonus for signing is significant, but the royalty figure is the most important one for long term profits.
Permalink Reply by Judy Duff on September 23, 2009 at 7:30am
I would rather not give an exact figure, but I can tell you no one was ripped off here. All three landowners were well aware of the prospect of future royalties and charged accordingly. One couple lives in FL and would rather have the upfront payment from the sale than wait for possible future royalties. Another owns a great deal of land in my hometown and wanted to sell a parcel of it while retaining the rest for gas exploration. And the third took the money from the leasing bonus, but wanted the money from the sale now instead of gambling on future royalties, so they sold their gas rights along with the land. Prices vary depending on which county you are looking to buy in and how hot the drilling is in that area. Bradford and Susquehanna seem to be higher than Lycoming and Sullivan right now.

There is a lot of land changing hands right now. There are those who don't believe this gas exploration will go anywhere and they are looking to sell. There are those who feel that selling their land for eight to ten thousand dollars an acre is a way to finance their retirement without waiting for possible royalties. And there are those who are buying land as an investment, believing that it will more than pay for itself through royalties later on. It's all a gamble. Unfortunately, many in our area sold their rights completely ten years ago, not realizing what the possibilities were. Others leased their rights for five to fifty dollars an acre and are locked into those contracts. Hopefully, those people will earn royalties soon to make up for the poor deal they signed onto or their leases will expire and they will be able to negotiate a better deal this time around.

By the way, I mistakenly said our original deal was with Range when in fact it is with Chief.
Permalink Reply by Jackie on September 22, 2009 at 6:23am
I live in Nevada, but I just inherited land in Tioga and Lycoming Counties, what kind of offers are people getting?
Permalink Reply by Mowing the pipeline on October 20, 2009 at 4:51pm
I just received Elexco/Fortuna's offer of $5500/5Years/20% for acreage in Brackney and this will be my third and final lease. Double what Alta paid for a smaller, adjacent parcent a few months back. As they say in poker, all in.
Permalink Reply by marylou handzo on October 30, 2009 at 4:06pm
Jackie, I am from that part of Pennsylvania and I can give you the lowdown on the leases and mineral rights if you like. You can contact me through gomarcellusshale or email me @ markandmarylou@hotmail.com
Permalink Reply by Steve Sykora on September 23, 2009 at 3:00pm
PA
Potter
$200/acre 5 yr $1000 total upfront
12.5%
5 yr

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