nela lease released

Received letter from NELA cancelling my lease.  There was an option to close the well after water samples had been taken, or leave it open.  I opted to leave it open.  Can anyone tell me who, if any, can I sign a new lease with so that when drilling is begun, I might be able to benefit from this land.  My land is in Trumbull County.  Thanks

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Permalink Reply by Craig Stull on December 12, 2013 at 3:21pm

Berthenia

  As far as I know no one is currently leasing in North Bloomfield. Do you have any idea why N.E.L.A. released you from your lease ?

Permalink Reply by Berthenia Fuentes on December 13, 2013 at 5:26am

Thanks for your interest, Craig.  As far as I can see from the correspondence received from NELA says, "some well respected oil companies have pulled out of the Utica Shale completely in our area, while the few that remain are still evaluating their data and are basically sitting on the fence.  The bottom line is that our leases will have expired by the time this new technology is developed.  No one has shown serious interest in NELA portfolio of leases.  One company expressed a desire to "cherry pick" some acreage in the far southern part of our (NELA) portfolio but their lease terms were significantly less protective than our NELA lease.  We said we would not allow "cherry picking" to the detriment of the group as a whole.  A lease with less than 2 years remaining on the primary term has very little value under these current conditions given the economics of expensive horizontal drilling."  etc., etc. etc.

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