Have the gas & oil companies lost interest in leasing land?

I have over 70 acres in western Carroll County with no current gas or oil lease. I called Rex Energy and Chesapeake about leasing and they said they are not interested. I am curious on why they are not in the market at this time.

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 18, 2013 at 3:42pm

CHK has over 1,000,000 acres under lease at the moment, so that would explain their hesitation.  Rex currently won't lease land unless it's contiguous with other leases that they have.  They're not huge spenders and they focus more on getting drillable units rather than simply taking anything and everything.  How much are looking for per acre?

Permalink Reply by Hunter on September 18, 2013 at 4:22pm

I thought $5000 per acre is fair with 18 to 20% gross royalties. I don't know if I am out of the park. Just what people said they have been offered.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 18, 2013 at 4:26pm

That sounds in line with what's out there.

Permalink Reply by Paul Martinelli on September 19, 2013 at 1:25am

......you are just going to have to sit tight.  Western Carrol and Tusc. county will see more activity once Leesville and Urichsville plants are built and operational.  

 

Sierra and Enervest may be the eventual drillers in this location......but it is slow going.

 

patience=$$  in this game.    But everyone has to make thier own deal based on thier own circumstances.

 

Permalink Reply by Joseph-Ohio on September 19, 2013 at 1:45am
Wondering why this apparent 'lull' in activity hasn't provided more interest on behalf of investors who find it easy to wait for a return ?

Seems to me there would be more interest in this window of opportunity.

Perhaps those types (investors with deep pockets) are looking for quicker returns and in the process are missing the opportunity for certain returns ?

Puzzling to me.
Permalink Reply by Joseph-Ohio on September 19, 2013 at 2:10am
Probably the 'greed override' kicking in.

Better to try getting it for nothing / stealing it.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 19, 2013 at 2:17am

Waiting years for ROI is not something most investors want to do.

Permalink Reply by Joseph-Ohio on September 19, 2013 at 2:30am
Waiting years (for a 'Return On Investment') is tough.
Ask us, as landowners we know.
But, return on gas & oil seems about as certain of an investment as exists.
That's one big reason we invested in our land.
Thinking landowners are a rather unique breed.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 19, 2013 at 3:34pm

There is no certainty, especially in oil and gas.  Ask Norse Energy and everyone else who's been in New York state for the last few years.

Permalink Reply by Joseph-Ohio on September 19, 2013 at 3:54pm
Yeah.
Have to factor in the politics / politicians.
How odd it is that many times politics / leadership appears to trip up our domestic economic recovery instead of lead us toward it / out of the bog.
Permalink Reply by Joseph-Ohio on September 19, 2013 at 8:47pm
Correct Marcus.
The words 'certain' and 'certainty' are too strong to apply in this context.
'Less risky' and 'risk' are a better fit.
Permalink Reply by Joseph-Ohio on September 19, 2013 at 5:36am
Still kind of puzzled.

We've all heard the phraseology 'Risk vs. Reward' / the greater the risk the greater reward, etc.

In the Utica Point Pleasant I'm sensing high rewards vs. low risk. Actually, the greatest risk / unknown I see is the amount of time delaying development will consume.

That's probably enough to put many would be investors off.

Perhaps that's the best answer to the puzzle.

Being the cynic, perhaps it's the plan.

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