Is this lease a joke?

No this lease was recorded in Licking County, Ohio. SHOCKING TO SAY THE LEAST! 

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Permalink Reply by BMR on September 11, 2012 at 9:24am

Looks like a good lease to me.  What's so shocking?

Permalink Reply by Billy Park Whyde on September 11, 2012 at 9:57am

Only 1/8  net after charges, multipul pipelines  free to the lessee, free compressor stations location unknown . In case your new here leases are worth a minimum of no less than 15%  with restrictive leases! 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 11, 2012 at 4:52pm

The pipelines, compressor et al are certainly bad, but 1/8 isn't an unfair rate for a non-Utica/PP lease.  Drilling Clinton wells (which I assume that's what this is for) isn't profitable with such low prices.  Now if it was 1/8 and it was for the Utica/PP I'd say it was a total rip off.  But if Artex approached the landowner about Clinton drilling and left them the option to sign a Utica lease with someone else that isn't awful.  But the other things you mentioned were lousy, I'll give you that.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 12, 2012 at 1:20am

Didn't they exclude the Utica/PP?  If so then I would assume that they're after conventional plays, the Clinton being the most prolific.  

Permalink Reply by BMR on September 12, 2012 at 4:11am

Check the exhibit.  It's a non-surface lease.

Permalink Reply by Shawn on September 11, 2012 at 10:47am

Why is Artex excluding the "Utica/Point Pleasant Shale" formations in these leases?

Permalink Reply by searcherone on September 12, 2012 at 11:33am

Do you know township location or name of well permitted in Monroe County?  Thanks.

Permalink Reply by BMR on September 12, 2012 at 4:10am

It's a non-surface lease and they are obviously drilling a vertical Rose Run well.  Can't justify more than 1/8th there.  I would sign that lease in a heartbeat.

Permalink Reply by Billy Park Whyde on September 12, 2012 at 7:14am

With a  Rise Run in the area having produced 43,00bbl in one year 1/8th is a rip off as that well cost very little  with exceptional returns. The royalty is not a 1/8th after they minus cost AND TAXES!!

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 12, 2012 at 12:04pm

Yeah, that one well did that but the Rose Run is a fickle mistress.  Anything that deep is a shot in the dark, even with seismic (unless it's very expensive 3d).

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