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!

Views: 52124

Replies to This Discussion

Permalink Reply by Mark Curry on August 29, 2011 at 2:55pm
George, those are pretty good terms, compared to what we have seen.  Offers is Noble are like $2250/acre and 15% GROSS royalty.  The leases we've seen have an "Order of Payment" clause that spell out the # of days they have to pay..30, 45, 90, whatever.  I believe that the "Order of Payment" clause needs to be executed to get the day clock going to your payment..I'd pay particular attention to that clause if you see it in the agreement.
Permalink Reply by sawtooth on September 6, 2011 at 2:59pm
Anyone hear what KWGD ended up getting for royalties and up front bonus pay?
Permalink Reply by AT on September 6, 2011 at 3:34pm
KWGD Group 5 is currently out for bid. The bid deadline is September 15th. Those numbers will not be announced and known by group members until the September 20th group meeting in Cambridge.
Permalink Reply by Judy Woodard on September 8, 2011 at 6:37am

Talk to Homeland Energy Ventures before signing any "cheap" lease. You are in danger of shooting yourself in the foot with these people. My neighbors signed on for pennies compared to what Homeland Energy will get for our group of landowners.  Go to their website and get signed on to let them represent you in negotiations (taking place now) with 4 major oil companies who are sending representatives to THEIR office.  They not only negotiate sign-on bonus and production royalties, they have clauses that truly protect the landowner in the lease they bring to use (due later in September). They also monitor the wells' production (at the wellhead) after drilling to make sure the landowner is paid on all salable products (oil as well as various gasses) the well provides. They stand between the oil company and the landowner for a small % commission and will continue oversight of your lease until the cows come home. Don't make the mistake my neighbors have made. PLEASE. 

Permalink Reply by AT on September 8, 2011 at 12:34pm
Isn't Homeland the group that takes a not only a percentage of your up-front signing bonus money but also a percentage of any royalty money you recieve until the end of time???
Permalink Reply by Steven Gardner on September 8, 2011 at 1:12pm

Yes Homeland takes 1% of royalties and they want a 12 month commitment to sign up. This is like getting a loan from a bank to start a business and the bank getting 1% of your profits for eternity... insane if you ask me !  I know they say they will represent you later in your oil gas endevor.. but how many clients will they have .. thats impossible... are they attorneys? Will they hire attorneys?

Makes no sense to me but everybody has their own idea of a good deal.

Permalink Reply by AT on September 8, 2011 at 1:26pm

Makes no sense to me either. Sounds like someone looking for a free ride on our good fortunes!

Permalink Reply by Mark A Miller on September 8, 2011 at 2:13pm
I have a friend in Guernsey County that hooked up with Homeland and they just got a lease offer in the $4,000 per acre range as well as 18.75 % of royalties   I'll gladly give someone a cut of my royalty if he negotiates for a higher royalty
Permalink Reply by AT on September 8, 2011 at 3:06pm

We should all be in their business ;-)

Permalink Reply by Private KeepOut on September 8, 2011 at 3:11pm
Why on earth would you want to give someone a cut of your royalty payment when you have lawyers that will negotiate for you for a flat fee or percentage of you sign on bonus.
Permalink Reply by scott peterson on September 8, 2011 at 11:44pm
exactly, that is potentially a huge amount of money. not a good move.
Permalink Reply by Judy Woodard on September 8, 2011 at 6:59am

DON't SIGN WITH FCEC-it's a ripoff. Homeland Energy Ventures of Pittsburgh (who represent the group of landowners we're with in negotiations) stated in info meetings that $35,000 was the average for putting a drilling site on your land--it takes 5 acres! Add me to your Facebook as a friend and I will give you all the details. I've taken notes for 6 meetings!

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service