current lease bonus amounts?

Anyone recently leased land in Bradford County?  Especially in the Franklin area?  We have 120 acres in Franklindale with a lease that ran out over a year ago.  the best offer we have had is from Chesapeake for $500/acre.  Personally I feel this is an insult....our neighbors say they got 1500 last year and they both have very small properties, no chance of a well being put on their land.  Our land would probably almost certainly have a well put on it eventually.

 

according to chesapeake, they have three wells going in within 4000 feet of our property and that they are setting up the units so that we will be an island of unleased land in the center of their wells.  Are we totally screwed?  I am guessing it would not be worth it for us to contact other leasing companies as Chesapeake holds almost all the leases around here.

 

 

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Replies to This Discussion

Permalink Reply by Rob Thompson on December 20, 2011 at 3:12pm

very interesting map....wish i understood something...how can they have these units with big holes in them and say they arent getting gas from some of this unleased land?  right near us is a prime example;

Mel unit

CHK 415.946011 acres
Instrument#201127244
Recorded Nov 3, 2011
Effective Aug 22, 2011
 
there are two units, side by side....with this odd shaped hole in the middle....how can they possibly drill and miss this person's land?  How can people who are like us, unleased protect ourselves from them getting free gas from our land?  it seems grossly unfair.
Permalink Reply by Frank Walker on January 2, 2012 at 10:14am

There was a time, not all that long ago, when I would have agreed with your opinion on this.

Recent revelations mitigate against your thinking, however.  To wit:

Apparently, in many instances, Bradford County shales are extremely tight.  Frac radii are not coming in as anticipated in many locations.

Thus, if they stand back a respectful distance from your land, they might not be harvesting all that much of your gas . . . not as much as I would have thought only a year ago.

Exception.  Free gas:

Shale tightness does not count when it comes to free gas.  The fissures and fractures in your shale are full of NG at maximum pressure.  If they intercept those fissures and fractures as they extend beyond your property line, they will be able to access your free gas without difficulty.  This might amount to 3%-5% or your gas . . . I don't really know the percentage.  But it's a small percentage.  Most of your NG is trapped within your shale and is not free.   Your shale must be fracked in order to release that gas.  But if there is extensive drilling all around you, you can kiss a fair amount of your free gas good-bye.

To be honest, this is an especially poor time to be unleased.  The price of NG is falling like a rock so companies are not really looking to lease new land.  The bubble has burst.  I'm sorry you find yourself in this situation.  And, IMO, things will become much worse before they get better.

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