Replies to This Discussion

Permalink Reply by Craig Stull on March 22, 2012 at 2:58pm

Nash, What is the lowest royalty percentage you would accept?

Permalink Reply by 3mfqdrnrij9ia on March 22, 2012 at 4:00pm

I too am looking for something around the 5000 range and 20%.  The trouble is, I thnk the O&G companies are playing hardball and we are going to take it in the shorts.  If we reject the leasee, there is no guarantee we will get another offer in a short period of time.  The other thing is that that jackass in Washington is going to find some way to shut this drilling down to promote his green energy.  Then we miss out on everything.  So is a bird in the hand worth the gamble for more later.  I have never had good luck when it comes to gambling.

Permalink Reply by Nash Smith on March 22, 2012 at 5:39pm

    The oil/drilling policy and the gas prices should help remove the current president.   The current anti- oil/drilling policies will play a large issue in the election, as alot of Americans can benefit from the drilling(as we are trying to)...

    As far as a percentage,  I would compare to the surrounding counties.  There is no reason it shouldn't be similar.

Permalink Reply by Tom Frey on March 22, 2012 at 11:12pm

I also feel $3600 is way to low. I don't know why trumbull county would be that much lower then the surrounding County's. Also i don't know where the $3600 came from other rumors.

Permalink Reply by Knows-a-little on March 24, 2012 at 12:02am

My property sets very close to a large area of State owned land, until they are ready to lease, I would have to wait for an acceptable offer, ( if the ALOV offer isn't )! I can see no reason for Trumbull County landowners to accept less than the folks in Mahoning Co.

Some of the phrases in the lease sent by ALOV disturb me! Not the least of which is ' $30k for a 7 acre drill pad ', all along I've been hearing a drill pad would bring you $80k! There is $50k missing!

 

Permalink Reply by 3mfqdrnrij9ia on March 24, 2012 at 3:16am

Steve, I never heard 80K for a drill pad.  Even in ALOV's draft lease from November 11, 2011 the drill pad price is set at 30K.

Permalink Reply by Knows-a-little on March 24, 2012 at 10:38am

$80k didn't come from ALOV...I assumed it was the going rate until I saw ALOV's figures!

Permalink Reply by Kevin Rishaw on March 24, 2012 at 11:06am

Other aspects of the lease need to be taken into consideration, the lease paying 80k for a pad may have other downfalls. However I do not weigh the pad fee very heavily as its hit and miss if our land would ever see a wellhead...

Permalink Reply by Kevin Rishaw on March 24, 2012 at 9:30am

My feelings are that the draft lease is good but not great. At this point given what I read in the draft 4k or more would satisfy me. Any less ands its most likely a no go.

Permalink Reply by Craig Stull on March 24, 2012 at 9:39am

I would not be surprised if we see a lower bonus but have a higher royalty percentage than the last group!

Permalink Reply by Kevin Rishaw on March 24, 2012 at 9:57am

I am ok with that, but, the terms of the lease would seem to cancel out the advantages of a higher percentage.

Permalink Reply by Knows-a-little on March 25, 2012 at 2:29am

The info I received from a knowledgeable source is that the oil content of the Utica diminishes as it comes north. Columbiana shows about 30%, Mahoning about 20% and Trumbull about 10%! While still profitable, Trumbull is on the lower end. The other gases are still there, but RIGHT NOW, they are after the oil...$ talks! This may be why we get a lower offer on bonus $, i would expect a high royalty % in this case...

• ‹ Previous
• 1
• 2
• Next ›
• Page