Any interest in leasing in Stark county with the recent Clinton drilling ?

How about small parcels that border larger already leased parcels ?

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Permalink Reply by PA Joe on September 4, 2014 at 1:24am

There probably will be but don't look for more than $15-25/acre. Anymore than that and the wells won't make money. These are coming in at like 75 BOPD where oily and some of the Stark are 100% gas so given that App Basin gas pricing is now NYMEX minus ~ two dollars they probably aren't commercially viable but will be someday!

Permalink Reply by pg guy on September 4, 2014 at 1:41am

I would bet that except for house lots, virtually all of Stark County is HBP.

Permalink Reply by David Mohn on September 4, 2014 at 3:04am

And what wasn't HBP in 2010 was leased up by CHK in 10 year leases.  

Permalink Reply by PA Joe on September 4, 2014 at 3:37am

A lot of those lease were just Utica and deeper, or Utica only...

Permalink Reply by David Mohn on September 4, 2014 at 6:49am

Actually when CHK came in and leased any unleased land, they would not do pugh clauses.  So yes, the HBP leases they bought the deep rights and the new leases they leased the whole thing. 

Permalink Reply by Sonja on September 4, 2014 at 9:30am

So here is a question.  If you have previously leased your deep rights, but maintained your shallow rights.  Why... or Would... it be beneficial or non-beneficial if approached, to put a Clinton well on your property at this time? 

Permalink Reply by David Mohn on September 4, 2014 at 9:41am

I would say it would be beneficial to have a Clinton well because you would be getting some royalities.  If they ever drill the Utica, you could become part of a drilling unit and get royalities from the Utica.  In reality, you could be collecting from both shallow and deep rights.  Just my opinion.    I don't have any hard facts, just my humble opinion.  

Permalink Reply by Sonja on September 5, 2014 at 1:20am

Thanks.  That is what I am looking for is other opinions.  The free gas is beneficial from a shallow, and immediate royalties.  Because we just don't know if the Utica will ever be explored in Stark.  Didn't know in looking at the "Big Picture", if having the shallow would affect the property long term, if the deep rights lease expires. 

Permalink Reply by David Mohn on September 5, 2014 at 2:17am

If your deep rights are split out from your shallow rights and your deep rights lease expire then you can always lease them again.  I doubt that Stark Utica will be drilled but you never know.   I hope it will and I try to stay positive that it will (I have 65 acres) but I am not counting on it.  Now I feel I have a better chance of getting Social Security than I do Utica royalities.   Again, just my opinion. 

Permalink Reply by Hunter 1 on September 5, 2014 at 1:47pm
Why did buckeye mineral come in here like gangbusters 4 years ago if they did not know something ?
Permalink Reply by Dexter Green on September 5, 2014 at 4:15pm

Four years ago everyone was speculating.  That's what the first 18-24 months of any shale leasing play is.

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