Wetzel, WV Lease Question

We have received a lease packet from American Energy-Marcellus LLC.  They are offering us a 10 year term at $2500 per acre and 12.5% royalty on produced minerals for property owned in Wetzel County, WV.  We are complete novice to this.  We just found out we inherited this property and do not know if this offer is a) legitimate or b) a fair offer or c) how we go about determining what would be reasonable expectations of monthly income from this lease. Is there a process out there that would provide historical data of output production for this geographic area and or is there a recognized method that would assist us in trying to calculate this revenue information?  Any help you can give would be appreciated.

Views: 2677

▶ Reply to This

Replies to This Discussion

Permalink Reply by S S C on October 5, 2014 at 2:35am
FWIW, CHK and other companies as well, read these forums closely.
Permalink Reply by LBaker on October 5, 2014 at 1:19pm

Thanks for the heads up.

Permalink Reply by PETE on October 6, 2014 at 9:32am

educate your self first--separate each play ie Marcellus ,Utica,point pleasant and so forth
get paid for all hydrocarbons produced, and get paid on the dekatherms for the gas.
they are just coming around to lease the Utica here in marshall county--last offer for just the Utica was 3500 an acre @ 20% royalty

Permalink Reply by LBaker on October 6, 2014 at 12:14pm

Thank you, Pete.  We are in the Marcellus.  We have been doing a lot of reading and are currently awaiting a response from an O & G attorney.

Permalink Reply by searcherone on October 6, 2014 at 2:44pm

You are in the Marcellus AND the UTICA.   Don't let a land person say you only have one of them.

Permalink Reply by LBaker on October 7, 2014 at 4:06am

Searchone, thank you.  I saw reference to a third play that appears to be new.  Do you know anything about that? 

I am so overwhelmed at this stage of learning all of this that it is starting to all run together!  Aaack!

Permalink Reply by searcherone on October 7, 2014 at 11:15am

Upper Devonian also sometimes called Rhinestreet.    Haven't really heard anything about wells drilled in that formation yet, but its there.

Permalink Reply by LBaker on October 7, 2014 at 11:20am

Thank you!  That is what I had read!

Permalink Reply by PETE on October 7, 2014 at 11:47am

when they frack the Marcellus they expect some of the frack to reach the rhinestreet--that is what an engineer has told me and what they call the Utica is not what they are drilling, it is the point pleasant they are producing and drilling

Permalink Reply by LBaker on October 7, 2014 at 4:56pm

Pete, is Point Pleasant part of Devonian?  I thought PP was in Pennsylvania, not WV Wetzel area...now I am confused. 

Permalink Reply by PETE on October 7, 2014 at 11:20pm

from my understanding the PP lays directly on top on top of the utica

Permalink Reply by LBaker on October 8, 2014 at 3:41am

Ah, that makes sense.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service