Talisman Negotiations - 194 acres in Bradford County / Windham Twnsp.

Has any one had negotiation talks with Talisman recently?  I just received a lease from them however they tell me that they can't pay bonus money until 2012.  Does this seem legit?  They've offered 18% and $4,500 /acre.  Does anyone have experience with negotiating for a good faith payment of bonus money with the balance due next year.  I'd appreciate hearing any advice.

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Replies to This Discussion

Permalink Reply by Rob Thompson on September 20, 2011 at 9:13am

wow....sounds like a good deal....where are you in Bradford County?  Not sure where Talisman is focusing.  I have been pretty screwed by Chesapeake.  they dont want to offer me anything for my acreage, (120)...say they are just going to drill around me...unless I want to accept their offer of $500/acre. wish I lived in Talisman country.

Permalink Reply by milton nelson weir on September 20, 2011 at 9:36am

OUR LAND IS JUST OFF RT. 1049 NEAR ROME, PA.  TALISMAN'S OPERATIONS TOTALLY SURROUND OUR PARCEL AND THE SURFACE OWNER'S SON IS NEXT DOOR AND JUST SIGNED WITH TALISMAN IN JUNE.

$4,500.00 / 18% IS WHAT'S OFFERED BUT I DON'T KNOW IF IT THE MARKET PRICE.  LOOKING FOR A RECOMMENDATION FOR AN OIL AND GAS ATTORNEY NOW.  GOOD LUCK WITH CHESAPEAKE.

Permalink Reply by Frank Walker on September 20, 2011 at 12:29pm

You should consider yourself most fortunate to be dealing with Talisman.  The Talisman folks, for the most part, are straight shooters.  They are good people.  Talisman is not Chesapeake.

 

I cannot comment on the market over where you are.  But I can make one or two general observations:

 

Try to learn the strategic importance of your parcel to Talisman.  Is it at one end of the unit?  Does it possibly block other land they already have under lease?  (Landex can assist you in answering the latter.)  You have a decent sized parcel.  Is it nevertheless practical for them to drill around you or to bypass you?  Look at it from Talisman's perspective and answer:  What is their marginal cost to develop your property?

 

Obviously I'm not expecting or wanting you to respond to me on these questions.  I am, instead, suggesting you ask and answer such questions as these for yourself prior to negotiations with Talisman.  For (what I hope are) obvious reasons, the answers could impact the value of your land when viewed from Talisman's side of the board.  This is part of strategy.

 

Another part of strategy, once the above have been addressed, relates to Talisman's drilling progress, if any.  Should your property have strategic importance to Talisman in the first place, the precise value to them of your land will be governed by the extent to which they are at sword's point in drilling same.  The ideal time to lease is when their situation is most acute.  Unfortunately, timing means a lot.  If you hold out too long, beyond completion of the horizontals which otherwise would drain your land, your goose is cooked and you will get nothing at all.  So you either have to invest sufficient work to where you know what you are doing or . . .

 

you have to be lucky.

 

This is JMHO:  Reliance on luck is not an especially effective strategy. 

Permalink Reply by milton nelson weir on September 20, 2011 at 12:40pm
FRANK, THANKS FOR THE RESPONSE.  ALL VALID POINTS.  WE ARE NOT GREEDY JUST WANT TO GET THE DEAL DONE.  YOUR OBSERVATION OF TALISMAN IS ACCURATE.  THANKS FOR YOUR INPUT.  LUCK AND STRATEGY ARE NOT COMPATIBLE.
CarolynPermalink Reply by Carolyn on September 22, 2011 at 1:53pm

Do not trust any gas drilling company.  I repeat, do not trust any gas drilling company.  Look at the record of what they do.  Get a really good, really expensive lawyer because if you are foolish enough to give away your land to these people,  you are going to need it.  Don't believe me?  See for yourself, come to Dimock and talk to those who leased their land.

Permalink Reply by milton nelson weir on September 22, 2011 at 2:04pm
OK, thanks.
Permalink Reply by Julsieg1 on September 22, 2011 at 4:23pm

What happened to make you so sour?  I am new to this and like to read up on every story.  Who is your gas company?

Permalink Reply by milton nelson weir on September 22, 2011 at 4:36pm
sour?
Permalink Reply by Julsieg1 on September 22, 2011 at 4:51pm
I'm sorry, I was responding to Carolyn's reply of "do not trust any gas company ever". 
Permalink Reply by daniel cohen on September 22, 2011 at 5:42pm

Carolyn has been around the block a few times, and knows what she's talking about. You'd do well to heed her advice. I have been impressed with her for some time now.

Dan

Permalink Reply by milton nelson weir on September 22, 2011 at 6:53pm
I only own the subsurface rights to oil gas and minerals but the surface owner is fine with Talisman being there.  Hopefully, everything will go as planned.
Permalink Reply by Barbara on September 22, 2011 at 7:01pm
ditto from me re:carolyn AND her comment to not trust anyone..........the gas companies are out for big bucks.............period.  how they get them, who they step on or bulldoze, is immaterial to them. what the living conditions of those of us living here are left with is immaterial.  and this latter is true, too often, of even those fellow citizens who happen to live outside the area of impact of all of this.  gotta watch your back.

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