Shallow Gas rights Union Land Resources

Gang,

Has anyone heard of this group just wanting to lease shallow gas and oil rights?

 

400$ an acre/12.5% royalties?

 

Thanks Scott Austin

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Replies to This Discussion

Permalink Reply by Nancy Mosley on October 16, 2011 at 5:57am
What state?
Permalink Reply by Dave on October 16, 2011 at 6:06am
that is chevron
Permalink Reply by Kathleen Elsie Gibbs on October 16, 2011 at 7:50am
Yep Chevron (Atlas) in Westmoreland.
Permalink Reply by Mike Stevens on October 24, 2011 at 11:42am

I was also contacted by Union Land Resources regarding a shallow gas well lease.

I believe the person said they were representing Chesapeake Energy.

My property (25 acres) is in Clarion county, PA - Richland township.

As noted above, it seems like a fairly low offer?

Any thoughts or advice would be appreciated as I am new to leasing.

Permalink Reply by Mat B on October 24, 2011 at 11:54am
We were offered $500 but turned it down.  They also made an offer of $575 to the landowners groups in the area.
Permalink Reply by Mike Stevens on October 24, 2011 at 1:11pm
That's what my offer is, $500 per acre. What happened to the larger lease payments I keep hearing about?
Permalink Reply by Richard Trusik on October 31, 2011 at 1:27am
A friend of mine in Lawrence county was offered and accepted $3000 an acre and 15%, Shell I understand. A group of landowners got together and I guess there's more clout that way. My question is what is the difference between shallow and deep rights?
Permalink Reply by Richard Trusik on October 31, 2011 at 5:38am
I just spoke with a rep from Union Land Resources, she told me she was from Oklahoma.  I own 30 acres in Harmony Twp. in Forest county PA. Her offer was $350 an acre plus 12.5%. She told me that they were interested in oil rights.  Doe's anyone have the true picture on this proposal???  I received a letter from them and am investigating, is this the same manner that everyone else was contacted?  Maybe if we all put our heads together we can figure this thing out.
Permalink Reply by Mike Stevens on October 31, 2011 at 6:09am
My contact with Union Land Resources was a phone call on Saturday, Oct. 22. The person I spoke with said he represented Chesapeake Energy and was interested in a shallow gas well lease. I asked that he send me the documentation and I was told it would go out Monday. I have not received anything as of yet. The offer was for $500 an acre and I believe the percentage was 12.5
Permalink Reply by Richard Trusik on October 31, 2011 at 6:19am
Thank you for the response. Doe's anyone else have any imput on this?
3uq96odaochmjPermalink Reply by 3uq96odaochmj on November 22, 2011 at 2:34pm

Shallow rights (surface to about 3 or 4000 feet) have typically been paid at $10-$15/acre in pennsylvania, and at 12.5%.  These wells cost $160K to $225K to drill, frac, and produce.  With reserves on the order of 200 to 350 MMCF, and payout at least 6 or 7 years now due to nat. gas below $4/mcf, the vast majority of these types of wells are uneconomic to drill & produce.  Compared to a marcellus well which has reserves on order of 4.5 to 7 BCF, the high volume makes these kinds of wells much more economic, even at low nat. gas prices, just because of the sheer volumes of gas.

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