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!

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Replies to This Discussion

Permalink Reply by RobertS on September 22, 2011 at 6:37am

Yes, the Marcellus looked practically nonexistent on the ODNR map.

Please let us know what you find (with a link?).

Thanks!

 

Robert

Permalink Reply by Red Skelton on September 22, 2011 at 7:20am
Heres a link for Geology.com that shows it better.http://geology.com/articles/utica-shale/
Permalink Reply by RobertS on September 22, 2011 at 7:55am

Actually, even better:

http://ohiodnr.com/LinkClick.aspx?fileticket=KGlr4z4fPG4%3d&tab...

 

From this map the Marcellus looks very thin in Noble County, but good Utica.

Permalink Reply by Judy Woodard on September 23, 2011 at 1:33pm

From the geological map presented to our group, there is no Marcellus in Noble County. Utica shale (oil) is only across the northern tier of the county, the rest of the county is "wet gas", which is still profitable and worth mining. One of the companies talking to our group's representatives in Texas was very interested in Noble County. So, your friend is correct-there is no Marcellus shale here. She is also right that leases are by depth, but they speak in terms of depth and deposits, and may be worded to include the layers immediately above and below the Utica. People who have leased their land for Clinton development in the past can, depending on the depth or deposit mentioned in their lease, still lease their deeper rights for shale oil or wet gas drilling.

 

Permalink Reply by Jeremy on September 24, 2011 at 1:41pm

What did their map indicate for Monroe County?
Permalink Reply by Christiane Marshall on September 26, 2011 at 6:20am

Actually, she said there is Marcellus in Noble County according to a US map. She is going to try to get the link for me to share.

Judy, thanks for sharing all of that information.  Can you clarify something for us? You say there is no Utica in the southern part of Noble County, just wet gas. My understanding is that it is Utica, but probably wet gas in the Utica. What am I missing? I'm confused!

Permalink Reply by Judy Woodard on September 27, 2011 at 12:52pm
I think some of the terms are getting hazy. The Utica shale deposit which produces oil runs in an approximately 2-3 county wide strip from NE Oh (& north of there also) downward to the northern edge of Noble County. West of Guernsey Co the deposit is Marcellus which produces natural gas. Farther south in Noble Co this same level changes from oil deposit shale to wet gas shale. As explained by their geologist, the deposit, as it goes east & south gets deeper, hotter and dryer and contains less & less usable carbons. Therefore, when you look at deposits farther into WV, it's not going to be mined because it is deeper, hotter and no longer holds any carbon yielding rock. There are only 3 of these Utica ranges in the US:  North Dakota, Texas & Ohio. My geology may be arguably vague as to precision but I've seen this mapping several times and it's the basis for the value of leases in Guernsey Co.
Permalink Reply by Red Skelton on September 22, 2011 at 7:16am
Has anyone had any experience with Wishgard leasing their land?
Permalink Reply by V Miller on September 23, 2011 at 9:29am

I have acreage in Guernsey County and i leased with them back in March.  As it turns out, they made a mistake and i was not payed although a lot of landowners around me who signed with them were payed.  My opinion is that they get in early in areas and lease up land ahead of the big rush and normally for less bonus money and  royalty.  Their lease was so, so, but i know there are much better leases out there. 

Permalink Reply by Judy Woodard on September 23, 2011 at 2:51pm
Since they made a mistake and you weren't paid, doesn't that render your agreement null & void. Can't you go ahead now and lease for better figures with someone else? I'd find out!
Permalink Reply by Red Skelton on September 23, 2011 at 10:28am
O.k. Thanks Virgil and Tom. I'm thinking about going with SOLA, sounds like they might be one of the better and more established ones. I thought KWGD was good but now I'm hearing maybe not.
Permalink Reply by Christiane Marshall on September 24, 2011 at 8:45am
Call KWGD. Ask some questions. The impression you have may be incorrect--all I can say right now!

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