Small properties

What are the thoughts on all of the small properties in Carroll and surrounding counties that are unleased, and surrounded by Chesapeake leases it seems that Chesapeake was not concerned with getting these smaller parcels out in the country when they were leasing heavily, are these properties still valuable or do you have to wait to see if a drilling unit forms around it for them to become valuable the o&f companies?

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Permalink Reply by David Mohn on February 23, 2013 at 5:44am

I was told there was going to be a pad on my land and they were going to drill Dec. 2012.  They had a company come out and drill down about 25 feet to check the water table height.  They tested water wells within a 1500 foot radius of the pad.  They had enviromental engineers out and surveyed the entire area and then I was told the spot was put in the bull pen for later.  At 2000.00 per water test for every residence around me, I will assume 50 some houses that is allot to spend not to drill someday.  I also purchased over 5 acres next to me and then was told CHK is not interested in leasing it at all.   The 5 acreas is about 150 feet from where they plotted the drilling pad.  I agree with Fang, it is a waiting game.  CHK has been doing this longer than we have and they know all the tricks.  Do I think they will come back for my 5 acres yes I do.  I don't think they can drill arouind it since it is right off the middle of the proposed pad.  I don't think CHK would have spent close to 150,000.00 testing a site only to say to heck with it.   So sit tight.  My father always said, good things come to those who wait.  

Permalink Reply by Hunter 1 on February 23, 2013 at 6:33am
I wonde if the problems at the Fernandez pad have anything to do with the lack of activity in Paris twp I heard they hit a large amount of water and it was coming up around the rig and the rig almost tipped over they have not been back in Paris twp since
Permalink Reply by jason on February 23, 2013 at 7:31am

I agree it seems odd that all activity stopped after that incident at the Fernandez well. The Smith well has been drilled since April I believe and has not been fracked. I just wonder if the well can be fracked after sitting that long. I've heard rumors of future wells off of Beechwood and possibly 172 SW of  the Smith well, but time will tell.

Permalink Reply by Hunter 1 on February 23, 2013 at 3:54pm
Or could it be that a large percentage of stark county is hbp and the lease language is a little to sticky for the o&g companies
Permalink Reply by Hunter 1 on February 23, 2013 at 5:16pm
Our lease has been flipped twice since we leased originally it was with Ohio buckeye energy, then to CHK Appalachia, then in may 2012 it went to Total
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 23, 2013 at 6:17pm

Those are all the same company.  Total doesn't own your lease, just 25% of CHK's interest per their JV.

Permalink Reply by jason on February 24, 2013 at 12:49am

Hunter, my lease was assigned to Total also from CHK Exploration LLC and if you look at the Stark County Recorder's Page you will see many others in our area were reassigned also

Permalink Reply by Hunter 1 on February 24, 2013 at 1:58am
Thanks, I guess I should have known that is what it was, did Total pick certain areas they wanted to JV with CHK and if so is their a reason?
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 26, 2013 at 4:27pm

Yes, they have an AMI (Area of Mutual Interest) that covers certain areas.

Permalink Reply by Tom R on February 23, 2013 at 7:47am

I am in PA, so I don't know what the laws in Ohio may be in terms of pooling or requirements for unit formation, but this is something you really need to look into to tell just how much leverage you might have. Also look into the application of "Rule of Capture", PA applies it to gas and oil extraction. It is a large part of the reason for so called "doughnut holes" in PA units which are mentioned by Matthew Santiago. I know a couple of people with small acreage who were determined to hold out for the absolute top dollar and highest royalty % they had seen in the news. In the end they have been left out of units which are now in production.

Permalink Reply by Kathleen on February 23, 2013 at 8:06am
I would have to look up the law again but it seems the units are continuous here with a bigger buffer zone. I've seen a u it in PA that looked like a huge snake. Wow! I feel for those landowners left out.
I want everyone to make oodles of money from a lease and IMO if you hold out, ONE DAY you will benefit. The big question is, will it be in your lifetime?
PA, Arkansas all know what it feels like to think you have the upper hand to see the rigs leave for a more profitable plays.
If I was not signed I would not for 2 grand an acre but I also wouldn't hold out for 10k.
Permalink Reply by Hunter 1 on February 24, 2013 at 7:11am
Thanks for the insight hopefully the reason they have not been to Minerva area yet is because of a lack of infrastructure

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