Meeting with WKGD

 Were any of you in attendance at the meeting with KWGD on Monday at the PLCC. I was there and was totally surprised by the number of people in attendance. What were your thoughts about the meeting? I found it to be very informative.

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Replies to This Discussion

Permalink Reply by Nelson Roe on August 18, 2011 at 9:06am
Be aware that if you sign an engagement letter with this group, you are giving them the exclusive right to represent you and work on negotiations for 12 months (meaning that there is no way to back out of the group if someone else presents you with an attractive offer until after the year is over).  Plus, I believe this is one of the groups that does take a percentage your royalties as well as a percentage of the upfront signing bonus.
Permalink Reply by Shower Bath on August 18, 2011 at 9:15am

Nelson, Are you referring to the Homeland group referenced at the bottom of the previous page? I don't believe KWGD takes any landowner royalies, or has a one year lock-out if you don't sign their lease.

Randy

Permalink Reply by Nelson Roe on August 18, 2011 at 9:29am
Yes, I was referring to Homeland in that comment (I tried to reply directly to that post, that is one thing I never liked about this blog site is how it can sometimes throw your post too far away from the original & then one has to trace back through previous pages for certain posts to fit into context).  & No, KWG&D does not do either of these things.
Permalink Reply by Marc on August 18, 2011 at 1:01pm
From their website, Homeland's fees seem rather high.  Especially where royalties are concerned.
Permalink Reply by Marc on August 18, 2011 at 1:02pm
Still I'd be interested to know more from anyone who has talked/signed with Homeland.  I sent them an email several days ago and have not gotten any response.
Permalink Reply by Nelson Roe on August 18, 2011 at 1:38pm
I was at their last meeting here in Cambridge, so I have heard their presentation & I did stick around for a while during the Q&A session.  At the time of the last meeting, their fee was 5% of the signing bonus & 5% of the landowner royalties (which translates that if the agreement is for the landowner to receive a 20% royalty payment, the landowner would actually receive 19% & Homeland would receive 1%).  The guys there speaking did seem fairly knowledgeable, however I did not like the idea of sharing the royalties, or being locked in for the year.  What specifically would you like to know more about & if I can add any further input I will, if not perhaps someone else can jump in.
Permalink Reply by Philip Dobeck on August 18, 2011 at 4:35pm

First of all I am not pitching Homeland or any other group, but I did attend several of their meetings along with Wishguard, Farm Bureau and KWD&G. As well as investigating F&M group.

 

There is a Spencer county group that has signed with Homeland and are happy with the agreement. The royalty 1% charge is because Homeland is comitted to represent the group on going after the lease is signed according to the terms of the agreement.  This is apparently valuable to some lease signers. I don't remember the KWD&G or any other group discussing this.

For what it is worth Homeland says this drives them to get land owners a higher royalty than other groups.

 

We decided to accept a lease offer from Amarado Oil and not join a group. They targeted a small area of the county that they believe was a good  play for them, and they  convinced us they are anxious to drill. 

We were paid (on the spot) for a 5year lease, renewable for three additional years with a good royalty. I had the lease reviewed by an attorney  and changed it to our liking.

If we hadn't signed this lease we were going to sign with Homeland 

 

If someone wants to info on the Spencer group and Homeland send me your email.   Thanks

 

Permalink Reply by Red Skelton on August 18, 2011 at 10:35pm
What was the signing bonus per acre? What is the royalty per cent? net or gross? What are they going to do for you with that 1% after you've signed a lease? Just wondering. Amarado came to us about 4 mths ago wanted us to sign up at a whopping $500.00 per on a 5 yr. lease and 12 1/2 % needless to say he left disappointed. Came back a mth later and offered $1700.00 and 15 % told him we'd lost interest. We found some issues with our mineral rights so we retained a local attorney and decided to go with KWGD, They're good people and very knowledgeable and helpful.
Permalink Reply by Nelson Roe on August 19, 2011 at 3:25pm
The signing bonus & royalties with Homeland were not yet established.  They also place the group acreage out to bid once the group is established.  I am not exactly sure what they do for the 1% that they take of your royalty.  They say that they will continue to represent you throughout the process, but I am not sure how much they would actually be able to do. (One of my main drawbacks with groups that want to attach part of their fees to the landowners royalties).  Shortly after attending Homeland's  presentation was when I decided to through my name into the hat with KWG&D as well.
Permalink Reply by W Moore on August 21, 2011 at 9:35pm
I to was going to sign with KWGD group but after talking with them directly I realize they to are a flipper and that there past leases have only netted them anywhere from 1700 to 2250 per acre.I work with a gentleman who lives in the fairview area who has a lease from chesapeak for 5,000 and acre.I have not signed with anyone yet but believe there is a lot more money to be had yet and better chances of getting a hole drilled which is where the real money is at.
Permalink Reply by Steven Gardner on August 21, 2011 at 10:11pm

Lets assume.. that Chesapeke buys the KWGD group ..  Who would they "flip" it to ?

What was the going per acre price last winter? .. this spring?

What does the Fairview lease look like? ... std oil & gas lease? .. any addendums?

 

Inquiring minds want to know...

Permalink Reply by AT on August 21, 2011 at 11:58pm

Sorry Richard, but your post sounds like some sort of propaganda stunt to me.

 

- Who is the "them" that you talked to directly?

 

- How does KWGD flip anything when the landowner is signing the lease directly with the O & G company?

 

- What is your basis for the statement you make "that there (their) past leases have only netted them anywhere from 1700 to 2250 per acre"? How are you computing "netted"? Keep in mind the last group to sign through KWGD (Group 4), signed for $2700 an acre and the O & G co paid KWGD's fees on the landowners' behalf which was above and beyong the $2700 the landowners' signed for.

 

- Did the gentleman who lives in the Fairview area with whom you work with sign a lease with Chesapeake or does he just have a copy of a lease from Chesapeake?

 

- How many acres did the gentleman who lives in the Fairview area with whom you work with lease to Chesapeake and are they contiguous acres?

 

- What percent royalty did he sign for and is it based on net or gross?

 

- Have you seen a copy of his Chesapeake lease for $5,000 an acre or is that just something he told you? Keep in mind, this the first rumor that I (and I'm sure probably everyone else on here) have even heard of any landowner in Ohio having been offered $5,000 an acre from anyone.

 

 

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