Replies to This Discussion

Permalink Reply by Linda A on September 11, 2012 at 3:41pm

so Hilcorp is the driller?  did I understand that right? 

We'd like to deal direct but... do you have contact info for Hilcorp?

Permalink Reply by james on September 11, 2012 at 3:58pm

Yeah, Hilcorp is the driller. I called Western Land services a few weeks ago to ask about acreage in Crawford County and they told me Hilcorp wasnt interested in Crawford County yet. Who knows when or if they will change their minds?

Permalink Reply by Linda A on September 11, 2012 at 4:02pm

thanks for the info James...

Permalink Reply by Linda A on September 12, 2012 at 2:43am

hi James, just a couple more questions...

Do you mind telling me bonus money amount and % royalty? 

Who is Western Land Services, is that the group to which you belong?  and they dealt directly with Hilcorp, the driller?

Could I please have that phone number? 

Thanks james - we were hoping to get this done before the end of the year, for tax purposes due to increase in taxes next year.

Permalink Reply by Linda A on September 4, 2012 at 4:06am

you are on the right track in tracking down a letter noting that lease was not renewed.  Producing or non producing, I don't think is your issue.  You need that release - mine from another company, was notarized too.

Permalink Reply by Jim Litwinowicz on September 4, 2012 at 4:36am

Linda is right.  You need to get a letter of release from Atlas. Maybe send them a letter with all the details ad request a release. If they don't respond, you may need to have an attorney send a letter. As a member of our group, you can contact M & P Law and talk to an attorney for advise for no additional fee.  Helping you resolve this and similar issues is covered by our 6%.

Permalink Reply by DeanG on September 11, 2012 at 10:36am

Has anyone heard anything about Oil Creek township? I keep hearing that they are leasing property in Rome and Steuben townships but not here?

Permalink Reply by Craig on September 11, 2012 at 11:26am

DeAnna ,

 

The majority of the reason will be that Oil Creek has ALOT of HBP (Held By Production) acreage, meaning that the companies that have wells in the area, control the acreage in the area. New leasing, trying to establish what is needed for these horizontal wells is difficult, if not iimpossible in some areas.  Additionally, as you move east in the county, you move farther away from the known "sweet" spots and further into areas that are far less "known" and riskier for the type of drilling that the companies are trying to currently establish. 

Many of the people that have acreage in Oil Creek, and even Rome, are located in such a manner that it is difficult to find a company to lease their property and that coompany still have a shot at getting it developed and recovering the monies that they are spending in the bonus monies. 

The landowner associations have tried to get some of this done, but, what often happens in these cases, is that the compnaies will pick and choose which properties they want to lease, or, if there is a contract for all or nothing, then the price on the whole is adjusted to account for acreage that companies do not want. 

 

Contrary to what every one seems to push on this site, not all these compnies throw their acreage into a big bag and then work together to get it drilled.  They often do not want to be in the position to hold acreage in conjunction with another company through a JOA (Joint Operating Agreement), for this restricts their ability to rais money through private equity firms, for the other company(ies) involved may encumber the properties/wells that they own jointly through loan documents that require the banks to have a security interest in every well and lease they are involved in.  Thus, when companies are trying to acquire acreage, they try to make sure they have the ability to make blocks out of acreage they are obtaining.

Again, if you look at the web, you will find many of the "buy" lines published by the companies do not include Crawford county, and those that do, tend to publish a line in the south and west portion of the county.  There is a reason behind this, and it typically is geology, known geology, that drives these "buy" lines.

Additionally, Oil Creek is one of the few townships in Crawford where you will find that there are a lot of mineral reservations in old deeds.  I was looking at a farm over there a few months back, and found that it did not have the mineral rights included in the sale, and they had been reserved many years before.  I did not buy the farm, although I liked its possibilities, I prefer to have some interest in the minerals if I am going to own the surface, just because I want some semblance of control over what happens if they want to drill. 

It will probably come, but when it does, it will be someone with a plan, and only after they have done some research to see if they can get development to happen after the lease is consummated.  If anyone says they will take anything, with no regard to the ability to develop it, whether it is a group, marketer, or oil and gas company, then you should be hesitant, but if they are thoughtful, and can twll you that they have a plan, and have put the time in to research whether or not they think they can get some development done, then give them consideration, if you are located in Oil Creek, for that area is tough.

 

Permalink Reply by DeanG on September 11, 2012 at 1:00pm

I did talk to Range last week. They are holding 238 acres of ours right now and expressed interested in the restt, but I think its going to come in much lower than what other people are getting. I wonder if we shouldn't just take a lower amount of bonus and be happy, if in fact, we are outside of the sweet spot areas.

 

Permalink Reply by Craig on September 11, 2012 at 1:29pm

The other areas are proven to be "sweet" , we just don't really know what we have here, and based on what can be found on the internet, it changes as you run from west to east, and south to north, and not for the better, but we will have to see.

 Range and a few others are working on some wells in Crawford county, but no released results, yet.  The biggest thing we all have to remember is that the contract is very important.  If Range is offering good protections and back end opportunities, like pugh clauses, it would be out of character for them, so be aware and request these things, no, DEMAND these types of things if they want the lease.

 

 

 

 

Permalink Reply by Douglas W on September 13, 2012 at 1:31pm

*American oil and gas reporter

Permalink Reply by Linda A on September 13, 2012 at 3:44pm

thanks!

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