Lease Offers in Harrison County

Updated November 8, 2011

This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.

As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.

Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in

Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.

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Replies to This Discussion

Permalink Reply by scott jackovitch on September 10, 2011 at 1:44am
Jim how good is our area ?  How does the buell well stack up compared to wells in other liquid plays ? I have heard some folks in the last day or so talking about the dry gas from the Buell well but what about the wet stuff. I believe the 6.5 mmcfed per day is the wet gas . How many barrels per day is that ? I am just looking for some clarification on exactly what we have beneath our feet in Harrison county.  It  seems to me that Hess has spent almost the same amount of cash for Harrison and parts of Belmont,Jefferson and Guernsey counties as CHK spent on all of there Ohio Utica leaseholds. Either Chk got everything really cheap or our area is really good .
Permalink Reply by Josh on September 10, 2011 at 2:25am

I believe that in Harrison County the tide has changed or is going too.  This is where they started to lease heavily and too many jumped the gun early.  With limited land left to lease the ball is in the O&G companies hands now.  At some point it is going to swing the other way and whoever is left will not have as much leverage as they used too.  Just my thoughts, alot of what I have predicted has been spot on, but I could be wrong about this one.

Permalink Reply by Jim Harber on September 10, 2011 at 4:35am

FYI, whether you know it or not, there is still quite a bit of acreage still not leased in Harrison County.

You may have been led to believe that chk has leased 90% of Harrison County, but that just isn't the truth. There are still  several people who have not leased for a number of reasons, not all about the money. Regardless, we are far from done leasing in Harrison County, and as more wells are drilled and production records float to the surface, leasing efforts will intensify even more than you have seen in the past. Again, no matter if you lease now or not, getting the highest royalty interest should be your primary focus, and being comfortable with the lease bonus and addendum's. That's just my take on it.

Permalink Reply by Kristie on September 10, 2011 at 4:41am

XTO made an offer of 4250  18.75% to a group of landowners in the Belmont/Jefferson/Harrison areas. All info had to be in yesterday to Susteric Law office. I do not know how many acres was involved.

 

Permalink Reply by Kristie on September 12, 2011 at 1:57pm
xto offer up to 4950 19%
Permalink Reply by AT on September 12, 2011 at 2:08pm

Is this through the above referenced group? Do you have contact information?

Permalink Reply by Kristie on September 12, 2011 at 3:11pm

Utica Landowners Group LLC contacts: Chuck Bell chuckbell45@msn.com Bruce Seabright 7406351117. Ed Sustersic. Lease signing sept14-16th. But are taking on new applicants. The paperwork I picked up tonight @ Hilltop says 4950 19%

Permalink Reply by AT on September 12, 2011 at 3:27pm
Thanks Kristie. Has anyone seen or have a copy of the lease?
Permalink Reply by Dan on September 13, 2011 at 12:16am
I've talked with Chuck Bell a couple times. I consider it a true grass-roots landowner group in that the leadership is formed by some of the landowners in the group, the fee is minimal, and the members have a vote in decisions that are made. The lease is a boilerplate with addendums (rather than a single custom-written document like ALOV or KWGD), which he describes as landowner-friendly, but I haven't seen it.  If you are looking to sign now, this could be a good group to consider, however the lease terms are very important, so read it over carefully to make sure it compares well with the stronger leases being promoted these days before you jump on board.
Permalink Reply by AT on September 13, 2011 at 1:06am
Thanks Dan. Yes, nice "bait" but always looking for that big hidden "hook". As always, proceeding cautiously.
Permalink Reply by Kristie on September 13, 2011 at 12:51am
I have a copy and would like an opinion. I cannot scan to post but can fax to someone with more knowledge on leases and addendums. Where to?
Permalink Reply by AT on September 13, 2011 at 1:02am
Hi Kristie, My fax is 740-283-6541. Thanks

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