Leasing townships across Potter......
Was curious what everyone is hearing regarding townships that are actively being worked by land men in Potter.
Hector, Harrison, Ulysses, Bingham, Sweden, Pike, West Branch, Allegany have all seen activity. Anyone hearing of other townships that have seen activity?
I have seen pricing steady in the $1,000-$1500 range for bonus. Have you heard the same or different? (Jack, we all are aware its way above $300 at this point)
Royalty was pegged for quite some time, but I have also seen it creep up to 15% in the last 1-2 months.
Players remain JKLM, Travis, and now some Shell activity looking to hold UPL leases that are running out of time. Any other active companies in the county?
Has anyone seen any active buying in the county? What companies?
Any new drilling permits in Potter?
Have a great day!
Tim
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Replies to This Discussion
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Permalink Reply by Chris on -
hi, we were approached by Continental for 750 dollars an acre for 10 years at 12 and a half percent royalties. We have land in Brookland Pennsylvania Potter County.we know this is too low and for too long.we have a lawyer that deals only with Marcellus Shaleand is looking into the permits and activities happening in the area...
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Permalink Reply by Jack Young on
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Funny you should mention that - there are significant parts of the county where nobody is offering $300/acre even now. Since JKLM came in with a selective $300 offer a year ago several areas have gotten more active, although some of those will likely decline before long - that's the way the business goes. Nobody can guess the tops or bottoms of the leasing market, since they're dictated by gas prices and private geologic assessments that none of us are privy to.
Shell isn't renewing any Ultra leases in Potter County - they left that job to Ultra under their agreement. Travis Peak is offering more money, but they want a 10 year lease that's not very attractive otherwise. So JKLM is really still the only company active in Potter County who is offering a now-standard five year lease. They are paying more (up to $1,500/acre, I believe) in selected areas, but there's no general escalation of either prices or leasing activity just yet that applies to the entire county.
No Utica test wells have been permitted, of course, and nobody will be drilling for Marcellus given gas prices and results to date. But I expect we'll see two or three Utica tests in 2015, and if any are big producers then lease prices really will climb! In the mean time, if you happen to be in the narrowly-defined areas that JKLM and Travis Peak are working, you've got a great opportunity to get leasing money that many of us assumed had gone away forever when the Marcellus turned out to be poor locally.
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Permalink Reply by Jim Jones on
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More competition coming to Potter and McKean County:
I was on the Landmen.net website and noticed a posting on 10/28/14 for Abstractors and Landmen needed in McKean and Potter. Company: Jim Bourbeau Land Service (JBLS).
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I don't believe it's intentional Jack, because there is considerable overlap in the folks we speak with, but some of the above info is already outdated.
Frequently I've stated that explaining O&G technology is like nailing jello to the wall. The same is true about the #'s and %'s being offered individuals across our region right now. Companies want to fly under the radar as much as possible, and their interest in this region has always been down played. It's like the horse-trading days of old. Want to buy a horse @ a good price? Bad mouth it to the owner as much as possible, then make an offer.
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I'm not sure I understand what you're saying here - what is it that you don't think is intentional? I posted on October 24th and today is November 10th. Is there something specific you're now disagreeing with 2 1/2 weeks later that wasn't as I suggested then?
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Sorry the time frame for my comment was not better. But how about up-dating your 2nd paragraph. You know how quickly #'s change.
Readers don't need suggestions as much as they need timely facts.
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Please feel free to tell everyone if you believe that something has changed. I'm not sure I see anything in that second paragraph that wasn't still accurate last time I checked. There's still nobody interested in the entire county, Ultra just called me on Friday trying to renew a lease they sold Shell ($750/acre for a three year extension) and everyone but JKLM wants to have the right to get 10 years on their leases.
But if you can think of something that will help you drum up business, here's your chance to say it.
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PGE is coming in but not broadcasting yet. Heard the same about Seneca. Land agents are in using the Continental -sp? name, but they really work for Travis Peak. Each company you mentioned is focused on specific twps.. Call me tomorrow afternoon and I may have more for you !
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Numbers are still fluctuating but not to the degree one might expect. JKLM has stated through land agents that $1500 is the top offer @ 12.5 % and no budging will happen. Other companies are offering more and with better terms. Wish you could make it to the 3-day event in Ulysses starting on NOV. 19th @ Boro Bldg.. Even for those not in immediate twps. it's worthwhile to see how these events go and what info can be shared.
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