Belmont County Activity

Recently this group has a bunch of new members but still has very little activity. How about ALL members sharing what they know is happening in Belmont County. Have you or any of your neighbors signed a lease? Have you or your neighbors been approached with any lease offers? Do you know of any landowner groups in Belmont County? What issues have you had to deal with in this process? Is anyone looking a pipeline right-of-way leases? What terms do you want in your lease when you do finally sign and why? The more information we share here with each other, the better prepared we will all be when we do sign leases and cash in on the mineral wealth under our lands in Belmont County.
Finnbear

PS - I am participating in the Smith-Goshen Landowners group, a landowner based, non-profit group. See http://hcolg.org/HowItWorks.html for an explanation of what a landowner non-profit is and how it works.

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Replies to This Discussion

3pdlfmsuk2er1Permalink Reply by 3pdlfmsuk2er1 on September 4, 2011 at 5:13am

I would love to talk to your landowner group In Belmont. We are buying large blocks at this time. We are a real company out of Texas. A friendly lease has to be in place in order to drill. We are not a large company but a mid-stream Operator that allows us to drill much quicker and we will.

 

Some one give me the contact for this group please.

 

Permalink Reply by Finnbear on September 4, 2011 at 8:53am
private message just sent - reply back with your email so we can take this discussion off-list
Permalink Reply by adam sorell on October 9, 2011 at 2:27pm

Finnbear-


Where do i get info about Smith Goshen or sign up contact info???

Permalink Reply by Finnbear on October 25, 2011 at 5:22pm
Sent you a friend request on Oct 10th. Get back to me and I'll get you the contact info.
Permalink Reply by Shower Bath on September 4, 2011 at 2:48pm

Kelly,  If the firm you represent did not receive a bid packet from the KWGD Group 5(which were sent out to prospective lessees on wed. August 31, 2011), you should contact William G. Williams, Esq. at ph 330-244-2878 or bwilliams@kwgd.com

You should probably contact him early Tue. morning.  Best....

Randy

Permalink Reply by adam sorell on September 7, 2011 at 6:13am
why do i get replies send in email and it take me an hour to find them??  MAKE THE DAMN LINK ACTUALLY LINK TO THE THREAD!!!!!!!!!!
Permalink Reply by Doc on September 8, 2011 at 3:28am
Hess oil just acquired Marquette Exploration. This after the consol-hess joint venture yesterday.

http://phx.corporate-ir.net/phoenix.zhtml?c=101801&p=irol-newsA...

This is big for Belmont as part of the county is in the wet zones.
Permalink Reply by Matt on September 8, 2011 at 12:02pm
wow. so math says they paid over 8823 per acre.
Permalink Reply by Tony on September 9, 2011 at 2:11am

As this is all very new to me, I was wondering if someone could explain the royalty potential. I understand the amount, I some what understand the drilling unit, what I don't understand is how is it determined who gets what when the royalties are distributed.

Permalink Reply by Doc on September 9, 2011 at 4:46am

There is no good answer. Estimating the value of the sub-surface minerals is not exact science. Some tracts will produce more than others. Although test wells will provide some prediction of potential, the only way to hedge your bet as a driller is to have large amounts of land over which an average production exceeds your costs and provides a profit for your investors.

 

The "real" production of the test wells is what we ( mineral rights owners ) would all like to know so we can adjust what we want as land owners. On the other hand, the driller wants to keep the production numbers lower to keep the value of the rights down. This would make it a market driven race to find a fair and equitable price for everyone. But there is not enough data and the wet and dry zone issues just add to the confusion.

 

But it is not that simple....Enter the speculator......if the real goal of the lessee ( lease holder ) is to leverage the potential value of the leases that they hold...and their real goal is to flip the lease or be bought out by a larger fish....they want the highest production numbers from test wells that they can get. This skews the free market issues of supply and demand and makes it almost impossible to predict what a real value might be. Right now it appears to be whatever, a group is able to negotiate until the land is all leased...so if you are big OG buy it now to stop the madness.

 

Due to the above, dividing the price paid in a joint venture by the number of acres held, is not an accurate way to estimate value per acre, as we do not know the other terms and conditions associated with the leased property that they hold. The lessee would have some average number ( cost/acre upfront and royalties that they paid for each acre in their holdings ) that they would use to determine their position. So, if on average their out-of-pocket paid up lease costs and contracted royalties are less than current contract rates, then a higher payment upfront (in a merger) per acre would be expected because they avoid a larger royalty payemnt.

 

When we ask for a combination of upfront payments and royalties...the OG companies will continue to compare our ask against their inventory, new data on well production, and decide what they will offer. As the inventory of available proprerty falls, the exclating prices will level off. On another thread,  someone already suggested this. The real wealth comes from the royalty, not the upfront. If you are a driller, you think in reverse about what you want to commit to and pay for.

Permalink Reply by Willy on September 11, 2011 at 7:11am

Hello Everybody, I am new to the forum and just trying to educate myself with everything going on in Belmont.  I have property in Washington township.  I am currently not living in Ohio and am very interested in joining a landowners group.  I have been contacted by Bonnie with Wishgard/NALS and had a lease sent to me. I need to do more research before signing anything and gathered a few potential contacts. This is what I have so far for Belmont County:

1.Nals/Wishgard/Bonnie: http://www.nalsinc.com/Landowners.html

2.Smith-Goshen Landowners Group: No website but contact Larry Cain familycain@sbcglobal.net

3. Bill Williams/Attorney on Group #5: http://w***********/Attorneys/AttorneyDetails.aspx?ID=35

4.Rokisky Group/Oh Valley Landowners: http://www.washingtonpalawyer.com/Ohio_Valley_Landowners.html

I have seen a few more landowner groups but it seems that they keep leaving out Belmont.  Can anyone add to this list of contacts?  It is nice to have a list that we could keep adding to.

 

Permalink Reply by Shower Bath on September 11, 2011 at 8:12am

Make contact with Finnbear. He is involved with a group of Belmont county landowners who are working as non-profit/low cost group in order to get the landowner friendly lease you'd like. I believe they have a substntial amount of acreage  commited, which is necessay for bargaining power. Don't be in a rush to sign, and learn as much as you can. Good luck....

Randy

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