HilCorp Pulling Out

I just learned that in Mercer County, PA, HilCorp is done leasing South Pye, Pymatuning, Fairview, and Deleware twps. They will honor the leases that were signed, so that is a big plus for those people (myslef include) that were counting on the bonus payment coming in. We need the demand side of the equation to pick up!

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Permalink Reply by Lance Nimmo on March 2, 2012 at 8:40am

Not at today's gas prices it's not. Cheasapeake is not pulling out of dry gas areas just to fool the land owners. Natural gas prices are too low to make dry gas profitable at Utica depths.

Permalink Reply by Berk on March 2, 2012 at 11:17am

From what I have read Western Mercer and Western Crawford counties should be wet. Of course this still needs to be verified with wells being drilled.

Permalink Reply by Schnoozie on March 2, 2012 at 9:26am

This website is a complete joke.

Who would put out a website with no company contact information. Enter your name and someone will get back to you??? Like buying a sweeper or security system.

Guaranteed till the 31st they take 5-6% of your bonus??? Laughable 

Permalink Reply by Berk on March 2, 2012 at 12:32pm

I'm not promoting anyone. The subject was leases moving out of Mercer. I showed a web site that there was still activity going on. I have no idea who this site was for nor am I involved with it any anyway. I'm sorry for getting involved in a discussion.   

Permalink Reply by Billy Park Whyde on March 2, 2012 at 12:37pm

PEACE!!!  Hey berk NP guy heck even I get jumped on by my wife at times lol  

Permalink Reply by Berk on March 2, 2012 at 12:39pm

wow!!!!

Permalink Reply by Billy Park Whyde on March 2, 2012 at 12:33pm

Baby I hope that was not directed at me I was only asking for confirmation I was not trying to promote I will delete my post

Permalink Reply by Jim Litwinowicz on March 2, 2012 at 12:49pm

Hilcorp is not pulling out but they are getting more selective in what areas they want.  Could be a "sweet spot" issue, maybe it because they didn't get large enough chunks in the other areas. Much of those areas they withdrew from have a lot of HBP acreage. Maybe they are just filling in gaps to form units.  I don't really know as I haven't talked to anyone from Hilcorp.

But they are not pulling out and the rumor mill says they are doing a well near Pulaski.  People have posted here that they are testing water wells in that area.  Expect to see a few more spots tested this summer.

CHK has withdrawn some offers in Ohio, according to commentators here.  Shell has withdrawn offers in S Venango.  Low prices have definitely hurt business.  CHK is too short of cash to do more leasing.

Permalink Reply by Lance Nimmo on March 2, 2012 at 2:37pm

Did you not read my original post? I said exactly where they where leaving...

Permalink Reply by Jim Litwinowicz on March 2, 2012 at 3:31pm

Lance, the title said they were pulling out. And from some of the comments made, people were confused by the title so I clarified it.

Permalink Reply by Lance Nimmo on March 2, 2012 at 5:08pm

Cheers, sorry I got a little hot. I was just trying to help people out. Did co-exprise get their leases to Western Land before Hilcorp pulled the plug on Deleware?

Permalink Reply by Tim R on March 2, 2012 at 12:56pm

My neighbor just called and they told him they were not leasing any more.

Not hard to figure out who it is, the usual suspects. Google search "mercercountygaslease.com" it was the seventh one down for me.

What cracks me up is that the lease IMO stunk. I was fine with the money and royalty but lots of things I would not agree to. Neither Co-x aka (mercercountygaslease.com) nor Hilcorp via Western Land would negotiate. Sign the boilerplate or walk, so I walked.

If you look at the thread here about PA bill 1410 http://gomarcellusshale.com/forum/topics/anyone-in-pa-heard-of-hb-1...

The bill, in addition to voiding legally agreed to royalty percentages, says that "if the royalties are not paid within the required period the lease may become null and void at the discretion of the lessor" That is a clause I insisted on that neither would agree to.  Without that clause the lessor's only recourse is an expensive lawsuit.  And that is just one of SEVERAL very basic protections for the lessor that were absent in the lease.

The same people, many of my neighbors included, who signed this lease will cry like babies if their royalty check doesn't come some day.  Even though they could have walked.  They will want the Government void a private contract, that they agreed too, just like they want to do with the royalty percentages.  I'm not saying it is going to happen but the lease they signed leaves the door open.  Go ahead and make bad decisions, the Guberment will bail you out later.

I agree with Mark McGrail, everyone should hold out, or should have. Never in my life was I approached with a business deal where there was such a take it or leave it attitude.

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