How about not leasing for ... a period

Companies already have thousands of acres under lease.

Only so many drilling rigs  that can drill only  ____ wells in a year.

Limited capacity in pipes, processing plants, markets etc.  Drilling programs likely to go on for the next 10, 20, 30 years?  More?

Companies now lease, unitize 800+ acres, drill a couple of wells to hold the unit and move on.

Where are Lessees likely to do the most drilling first?  and then ... ?  Maybe start where the shale is  known to be thickest?  Thinner shale later?

Drilling does not even have to be in the Marcellus to hold most leases in a unit.  If a shallow well is drilled, will that suffice to hold the unit?

Come back in a few years when the gas is finally needed in a program and then drill.

Lessees want to get land under control while it is cheap

Check Internet for Barnett Shale to find out What Texans pay Texans for shale leases  -- and the Marcellus shale is superior to the Barnett as an investment.

Is it possible to get a number of landowners to wait together?  Probably not.

Structures immediately above and below the Marcellus Shale could turn out to be just as valuable.

What is the best leasing strategy to get the most for the Lessor?  The most Bonus [particularly if aggressive drilling is not contemplated] and the most royalty?  What strata should be included in the lease?

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Permalink Reply by Lease Expert on June 14, 2010 at 10:53am
just a thought, why not lease for three years, make sure there are no extensions (even in the fine print) and lease again in three year (rinse and repeat) in 9 years you can get three bonuses if they don't drill for 10 years, fine you just utilized your land to make the most money.. Holding out for 10 years will make you nada... One trick to this though is making sure you don't get trapped into HBP or unitized without drilling...

However if everyone would quit leasing companies could focus drilling what they already have..
Permalink Reply by Sam Douglass on June 14, 2010 at 3:37pm
If they drill one shallow well in your unit of say 850 acre within the first 3 years, you may not see the big money for awhile. With the leases that they write they often virtually own your property and you will be limited in what you can do with it. Get some decent money for tying up your property in what could be reserves for future drilling.
Permalink Reply by May on June 15, 2010 at 4:51am
You raised the $3.5-4 million to drill your own Marcellus well?
Permalink Reply by Sam Douglass on June 15, 2010 at 2:06pm
Try to find out how far from the center of the vertical well you can draw gas out of the Marcellus shale, a tight formation. 400 feet? The people in the business seem to drill vertically to explore and horizontally to get production.
Permalink Reply by Sam Douglass on June 18, 2010 at 3:00am
As to whenther or not horizontal or vertical makes the most sense see:
http://freerepublic.com/focus/news/2486859/posts

There does not seem to be any doubt that horizontal is the way to go. Vertical for limited purposes like exploration and use in areas such as parts of Fayette County where the strata are so convoluted and fractured they have not figured out how to make the drill follow the Marcellus. Watch how the Texans and Oklahomans drill in PA. They do not fool around much with verticle holes.
Permalink Reply by Nancy Famiola on June 29, 2010 at 9:16am
Heyyy, James is playing fantasy land again. So James, I see now that you claimed you have drilled your own well. "This is what I did". No. You didn't.

Stop talking.

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