Land Owners Joining Together - Leases Being Offerred

To keep the landowners better informed of what is happening, list:

 

1. State:

2. County:

3. Company Offerring Lease:

4. Lease Offer (Price/Acre):

5. Lease Term (years):

6. Royalty:

 

Real Example:

 

1. PA

2. Clarion

3. Stone Energy

4. $200.00 to $1,500.00 (personally know of leases signed within this range).

5. 5-10 years

6. State Minimum to 17%

Views: 1927

Replies to This Discussion

Permalink Reply by Monty on July 27, 2010 at 2:26am
We went to an expo and got a flyer from MDS. The flyer states "MDS will have a deal on the market by Jan 1, 2011 with 6 months to find a prospective buyer, and if no buyer is found by June 30 of 2011, your lease with MDS would become null and void and you would be free and clear to lease with any other company." They are charging a 15% fee. I also heard the Fyburg group was offered a little over $3500 an acre and 17 percent. We have a few people we know in this group. This is only what we have been told have not seen anything in writing as of yet.
Permalink Reply by matthew h mcsparren on July 29, 2010 at 11:51pm
anyone have any information about MDS energy meeting in shippenville on thursday july 29
Permalink Reply by Interested Party on July 30, 2010 at 1:42am
Attended by approximately 375 people including at least four companies (EQTand Stone for sure). They are pooling acreage in Clarion, Jefferson, Armstrong, Indiana, Elk and maybe others, including their own, to sell or auction to BIG companies...Exxon-Mobil, Shell, India, perhaps China. They hope to have around 500,000 acres. Term:is ten years, no renewal, but any production in a drilling unit will hold acres forever, as long as gas is produced in commercial quantities (no Pugh Clause). Royalty is 15% minus post production costs as taxes, line repair, maintenance, and so on. Want signed leases by end of year and then sell in the spring outright or perhaps shop to several by deadline of June 30, 2011. Money in hands of landowners within 15 days of them receiving it from the land flip sale. If no money by Dec 31,2011 everything is null and void. Addendum with protections for water, trees, input on roads/pipelines included in standard lease agreement and they will entertain SLIGHT modifications.
Their take from bonus payment: 15% + administrative fees of probably 2-3%, so in effect, the landowner will get around 82% of the sale and MDS Energy Ltd will get 18% though they get all of the paperwork, processing, attorneys fees, transfers, etc. MDS Energy is not taking any % on the royalty -- that belongs fully to the landowners.

They said that the "conservative estimate" received from inside sources is that they should be able to get $8,000-$12,000 per acre if the market remains as it is now. However, I think the addendum will permit a reserve price of no more than $3,000 or $4,000 per acre or they will not include your lease in the sale.

I don't know anything else. Call them -- they will seriously talk to anyone interested with around 10 acres or more and the oil/gas rights.
Permalink Reply by matthew h mcsparren on August 9, 2010 at 8:16am
has anyone signed on with MDS energy? if so have they said what the lowest amount per acre they will accept?
Permalink Reply by Interested Party on August 9, 2010 at 8:20am
I don't know anyone who has signed with MDS yet. The Pgh paper did a short article on their quest too:

http://www.pittsburghlive.com/x/leadertimes/news/s_693532.html
Permalink Reply by Interested Party on August 14, 2010 at 5:06am
MDS Energy has an ad in the the Oil City The Derrick newspaper today, Sat Aug 14th that says "Let us show you how we can make you $8,000-$15,000 per acre., 10 or more acres required." Come see us and talk to one of our reps at the Mayport PA shop at 347 Mayport Road. on Tue Aug 14 or Tue Aug 31 from 6-8pm.
Permalink Reply by matthew h mcsparren on August 17, 2010 at 12:26am
called MDS energy 2 weeks ago,second call first one was in june, and asked to look at a contract have not heard back from them. has anyone seen one?
Permalink Reply by Lease Expert on August 17, 2010 at 2:09am
Guys MDS and their 8k to 15k is a sham! come on read the article... "up to 15k per acre" Sure you will make at least that over the life of your royalty and bonus.. This doesn't mean they give you 15k per acre bonus and and royalty.. These adds give legitimate companies and Landman a bad name...
Permalink Reply by matthew h mcsparren on August 17, 2010 at 11:25pm
i agree with you! i have worked in the gas industry for 35 years and was interested in what was in their contract.
Permalink Reply by DK on August 22, 2010 at 4:48pm
EQT taking a moratoriam on drilling. Look for lease rates to take a major tumble!
Bad wells tend to do that!
Permalink Reply by matthew h mcsparren on August 22, 2010 at 9:40pm
are you talking about knighttown rd?
Permalink Reply by Monty on August 22, 2010 at 11:12pm
I heard they were going to drill another well at knighttown rd.

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