Replies to This Discussion

Permalink Reply by RB on December 6, 2013 at 1:00pm

We did auto renewal but it will never come to that if action begins next year.  wow surface.  This is not surface.  I think surface is a different ball game.

Permalink Reply by LewPa on December 6, 2013 at 7:03pm

RB

Congrats on lease with Rex, just goes to show what they will pay if you fit into their picture!

 Denise, stick to your guns, Rex is all around you, try to be patient but not unreasonable, they will come around. I've heard that Rex is going to drill pretty aggressively in 2014 locally. After the new fical year, gas prices continue to go up thru the winter, you might find some better attitudes. Good luck, LewPA

Permalink Reply by Denise Rightmyer on December 6, 2013 at 7:42pm

I figured the low rate was just trying to tie ends up before the end of the year.   they wont even issue a check for 120 banking days that is a little extreme to me.  that isn't the only issue most other things, some have worked out some not.  some I will gladly give up for other.   knowing that others have received 3k and acre non surface and 16+% royalties and they are only offering me surface 1k and 15%.  I can wait to get a better deal and acceptable terms.  

the last o&g co said I would be drilled by not and I am not so I will not do auto renewal.   don't want this lousy offer again when others are getting better in 5 yrs.   since we are surface there are other issues we have with easements ect.

Permalink Reply by RB on December 6, 2013 at 8:25pm

We had the surface taken out and the royalty was reduced by 1/2 %.  Probably wouldn't have mattered, as it was just a standard lease option.  I would imagine if they offered you a surface only, they are looking at a different need with your property.  Have you asked?  Are you in Middlesex? 3 miles sounds like you may not be.  Figure surface need is one thing, leaves other options open for future possibilities.

Surface only with royalty doesn't sound like a bad deal.  The option is still there for under the surface.

And 120 days is same as me.

Permalink Reply by RB on December 6, 2013 at 8:59pm

Thanks LewPa.  You never know.  This was pretty much offered and there was no landman visit.  An inquiry came in the mail.  If you followed up, then it was mostly done by phone.  We didn't fuss on it.  I hear it was a mass mailing.  Supposedly many neighbors signed with another outfit a few years ago or threw out the mailing thinking it was junk mail.

Permalink Reply by Denise Rightmyer on December 6, 2013 at 10:22pm

Some of my property is in Middlesex, some is in Adams.   There are a lot of smaller leases around us that can not do surface.   the landman came a few days after my other lease expired.   if they take surface out then it goes down to 500.00 acre.   I know a few yrs back the smaller lots got 3500 acre and 18%, if they are using my land to get their gas I should get the 18 also, not less.   per acre is according to market.   the landman said I would not get drilled for 2 to 3 yrs, so I figure I don't have to jump on something that is not good for me or my family.    after the new yr I will get more serious about it...after all I wont receive a check for almost 6 months.  I find that extremely odd and long.   if the rates go down all they have to do is not send the check and it is all back to drawing board.  not very landowner friendly on that.   

Permalink Reply by John Mackey on December 11, 2013 at 6:48am

It's a timing thing, and being shut out after they decide to drill is a possibility. We signed with Huntley, primarily because Rex had multiple landsmen, none of which had the same offer or information.

Permalink Reply by John Mackey on December 11, 2013 at 6:54am

Rex - surface - 4800 + 16% with deductions. One month later, different landman 1000 + 15%. Happily during that month we signed with Huntley 4250 + 18% non-surface. Consult a lawyer and stay updated, it's a very fluid process!

Permalink Reply by RB on December 8, 2013 at 8:49pm

Interesting read.

Estimates of the value of an acre with the different shales.

http://www.observer-reporter.com/article/20131114/NEWS080101/131119...

Range’s information is also supported by a July report from Credit Suisse, which estimated that the value of an acre in the Super Rich Marcellus is nearly $196,000, while an acre of the Super Rich Upper Devonian is valued at $83,970.

While Credit Suisse valued the Utica Shale’s dry gas at $113,235, Pitzarella said it is more likely that the wet gas portion of the Utica would bring around $50,000 per acre, meaning that the half-million acres would have a multiplier of around $300,000 per acre for all three shales.

“But we’ve only scratched the surface” of the acreage, Pitzarella said, noting that while the company now has about 500 producing horizontal wells in the region, they represent only around 7 percent of the potential production from the 540,000 acres under lease.

“It further confirms that this is the place to be” for natural gas production, Pitzarella said, adding that the GIP map projections underscore the fact that Southwestern Pennsylvania is sitting on one of the largest supplies of natural gas in the world.

Permalink Reply by FairMktValue on December 10, 2013 at 8:53am

Guy was around yesterday to test the well water. Rex tests within 4,000 ft.

I was rather impressed by how thorough the process was. First asked about 20 questions about each well or water source (I have a old active spring) . Took pictures of each with white board with all the particulars written on it in the picture. Then took samples - 8 big quart size bottles and about 10 small ones.

Apparently they are going to check for just about everything.

Said I will get a copy of the full report in about a month.

Permalink Reply by Philip Thackray on December 10, 2013 at 9:31am

FYI

I just drove by the entrance to the Rex West pad on Valencia Road just north of Union Church Road.  They were just getting the road to the pad started.

FMV,

You may not want to drink the water when the report comes back!!! LOL!!

Phil

Permalink Reply by FairMktValue on December 10, 2013 at 10:34am

Phil,

Refresh my "old timers" memory before I frantically start searching around. lol

I recall that West was in the permit stage - has it been finalized ?

If so did we (Oliver of course) get plats etc?

I find it interesting that REX is going to permit 6 wells with 2 of them Burkett at the same time on the Ferree pad. Can not recall any detail on West.

Cheers 

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