Any more ALOV updates

We have property in Trumbull County and have been told by ALOV two more weeks but they have said that 3 times.  I am concerned about the length of time it is taking versus what they said it would take.  Has anyone else heard that they are promoting somewhere around $4000 or $4500 an acre and around 18% in royalties.  I have also heard people in the area  say that those per acre prices will start coming down as the companies expand into Trumbull County.  We have had interest at $1500 to $2000 per acre and 15% royalties and the ALOV proposal has more but I am not sure if it will really come true.

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Replies to This Discussion

Permalink Reply by Susan Johnson on March 7, 2012 at 2:29am

Previous owner from many years ago and their name did not appear in Exhibit A either.  I thought it was kind of strange.  I figured that because the leases were old, no further development of wells on the property other than the ones that have been there for over twenty years (with very little production) that they could only transfer their interest in the wells and the standard 40 acres around the well as long as it produces.

Permalink Reply by Nelson E. Yost on March 7, 2012 at 2:39am

Where did you find the list? I have a well that has been plugged over 10 years. I bought the farm 30 years ago. The deed states previous owner gets royalties from "existing" well...it does not exist anymore. So I should be free and clear?

Permalink Reply by Susan Johnson on March 7, 2012 at 2:53am

I researched every lease for the wells.  I then looked at the well reports on ODNR and could see where the O&G owner changed over the years.  I went back to the county recorder and researched transactions between those O&G compnies for the couple of years around where ownership changed hands.  I had to read a lot of lease assignments before I could get to the one where our wells were named.  It took a lot of digging but I found just about every transaction where our wells were impacted.  And in everyone it was our wells that were assigned, not the leases.  We only appeared in one exhibit.  I am hoping that it means that because the original leases never fully developed by adding more wells that the O&G ownership is reduced to the currently producing well and the surrounding 40 acres as noted on the well report with ODNR.

Permalink Reply by Finnbear on March 7, 2012 at 4:41am

Is the current unitization for that well just 40 acres?

Permalink Reply by Susan Johnson on March 8, 2012 at 2:20am

It appears its only 40 acres or 40.666.  According to the ODNR completion reports, that is the amount of acreage noted for each well.   Over the course of time, the leases released the majority of the acreage originally held by production so HBP now is only the 40 acres around the well.  But don't quote me on it.  

Permalink Reply by Dave on March 5, 2012 at 8:32am

Chesapeake has been signing up hundreds of non ALOV Trumbull County Landowners for months.  Check the auditor's website for confirmation.  The recorded documents do not show bonus, royalties or lease copy.  A friend of mine signed with CHK a few months ago for $1600 per acre bonus.  I'm unsure of royalties or lease terms but I'm sure since the lease was prepared by CHK, it's slanted in their favor.  Given the strength of the ALOV lease and the fact that the offer is double (assuming the $3600 figure is accurate) what they were paying non ALOV landowners, it appears to me ALOV has done a good job for us.  

Permalink Reply by Kevin Rishaw on March 5, 2012 at 7:28pm

While 4000 was kind of a mental benchmark, $3600 would make me very happy. If the language and royalty % is good then that's more then I had yesterday. I want drilled. Yet on the flip side, If I never get drilled that's ok also :).

3mfqdrnrij9iaPermalink Reply by 3mfqdrnrij9ia on March 8, 2012 at 3:38am

Just heard from a very reliable source that KWGD group in Guernsey county just least their land for $5000.00/acre to Gulfport.

Permalink Reply by Craig Stull on March 8, 2012 at 3:47am

Ron, have you any idea the size(acreage) of this group?

3mfqdrnrij9iaPermalink Reply by 3mfqdrnrij9ia on March 8, 2012 at 3:52am

This information came to me from a friend of mine that is a stock broker/investment counselor.  I can get the information from the person direct if you would like.  My friend said that he would be happy to talk to me.

3mfqdrnrij9iaPermalink Reply by 3mfqdrnrij9ia on March 8, 2012 at 4:09am

Please think of any other information you would like from this person.  I don't want to bother him too much.

Permalink Reply by Tom Frey on March 8, 2012 at 4:11am

Has he heard anything about the Trumbull county ALOV deal?

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