These are dated, but I wanted to get these down for future reference.

Pennsylvania-Potter County     05/16/2011     12.50%     $500.00    5 years     89.00
Pennsylvania-Potter County     03/15/2011     15.00%     $1750.00    5 years     115.00

 

ADD YOURS BELOW

Views: 7243

Replies to This Discussion

only 12 1/2 %

So jklm is currently @ $2,200 and 12.5% in Potter.

For the two writing books out here, how about posting the facts as you get them.

Opinions aside, what other factual data is new in Potter?

Tim, that number was in place for 13% for a 10 yr. term last month.  Wording after that was quite industry friendly. Don't know where it's at now. 

The key thing that determines the offers in Potter County right now is location. Tenaska will pay up to $1,000/acre for a 5 year, 14% no-deductions royalty lease, but you need to be along the West Branch-Abbott border. Travis Peak has narrowed their focus to a couple small areas where they think they can assemble a drillable block, but will pay well in those areas. PGE is currently active only in far western Roulette Township, but are still offering $2000/acre just across the line in a portion of McKean County. JKLM is probably the company with the widest area of interest, but it tends to be a band about a township or two wide running southwesterly from Hector Township towards Coudersport. If you're in the northern or southern townships, they probably won't make an offer. Shell is active in the east central part of the county, with their top offer supposedly being $1500/acre for a 10 year, 13.5% no deductions royalty lease. (They have different terms for 5+5 and 7 year leases.) Ultra is just doing extensions for Shell - 3 years for $750, and you get to keep your old royalty etc. (Nobody else will offer a term that short.) Lots of variety out there, and each company has slightly different deals available for special situations. If a property isn't in an area with any leasing activity, patience is in order. There's too little known about the Utica so far to know which portions of Potter County (if any) will be profitable. So no reason to panic if you haven't been contacted.

Appreciate the facts.

Are there new permits in Potter for a Utica well in 2015?

Is there any information regarding potential Utica wells in 2015 for Potter?

Unfortunately no Utica permits have been issued so far in Potter County. But I wouldn't be surprised if somebody tried one before the end of next year. That could change depending on the results from Shell's Utica well across the line in Clymer Township, Tioga County, however. (Better than expected production might speed things up.) I just had a call from one of our gas marketers suggesting the producers will be getting only about $2.50 for local gas January through March due to the negative basis we now receive. That's not going to convince anyone to move ahead more quickly. If that's the winter price for gas, next summer can only be worse. So I think we need to be patient.

Thank you Jack for mentioning the need for patience and no-need-to-panic.  Both are valuable considerations.  What we're seeing now is up-down-all-around "deals" that too often are no deal at all when terminology, possible rescinded offers, and shut-downs come into play. 4-County's strong points beyond size, marketing contacts, and willingness to negotiate reasonable contracts for its people, revolve around the people themselves.  I do appreciate what you share with the population when you calm down. 4-County is not your nemesis.  We all have an interest in these hills and valleys that goes beyond $$$, even though business-wise that's important too!

One of the strongest points for several counties across our area is the continued growth of infrastructure.  We've got to able to get production to market or what's the point?

In the spirit of the holidays we can all remove our focus on business for a few days, and direct our shared influences/efforts towards family, friends, and those with dire needs we may not know personally.  

It seems that PGE is rescinding any and all lease offers made in the last couples of months. I have received a letter stating this as have friends and neighbors. PGE has applied for a permit in Keating Township for a horizontal well and also in Roulette Township for a vertical well. The Keating pad is going to the Utica and the Roulette pad looks like a test bore into the Trenton.

Thank you Mike for sharing this piece of information.  Less than 7-8 yrs. ago many area residents had their leases rescinded during the economic downturn that they are still recovering from. I'm truly sorry you and your friends have fallen into the "rescinded" category on this go-around.  Dashed hopes are no fun, don't pay any bills, and are no way to bring in the New Year.

 Cancelling a signed agreement is not an option for landowners, but it is for O&G companies because perhaps when you and others signed there was no PGE signature on the document. Am I correct?

Landmen are claiming the project in Keating is strictly a PGE enterprise, not connected to their EXXON partnership.  Since the latter company's name carries more weight, the public would expect higher #'s and %'s in leases from a such a global firm.  If the test wells are successful in finding the honey pot area leases will stop being rescinded, but considering current energy economics for now only test wells will proceed.

Each company is trying to carve out its own niche in the region's townships across county lines, this rather than leasing/rescinding entire counties. It's a smart play learned the hard way back in 2008.  This change in approach has provided a beacon for Groups to also change strategies.  Landowners still have what O&G companies want & must have, AND vice versa. Both need each other , and neither makes money until the product can get to market.  Come on pipelines!!

Janice, you misread what I posted. They rescinded the offers they made, not signed leases as far as I know.  Waiting to hear from some friends that did sign but have yet to get their bonus payments along with a lease signed by PGE.

I, for one do not trust PGE and am hoping some other O&G companies move in to this area.

As I understand it, PGE wanted to make sure they didn't leave any offers outstanding that landowners might later try to accept, so they blanketed the area with letters and calls withdrawing any and all offers they made. I believe that they did sign and pay on several leases that were formally accepted before they changed their mind about leasing, however. PGE is a privately-held company, so tends to be tighter with their money than many competitors. This helps them in some cases, but can also hurt them on occasion when dealing with risky long-terms plays like the Utica.

Thanks for clearing up my misunderstanding of your post. It would be interesting to see how many have been paid since signing a recent PGE lease, and IF there was a clause stating a time frame for the pay-out to happen. It's a long road from getting a lease, receiving payment, action on the AC, and from well to market then royalty paid.  It's certainly a lesson in patience and perseverance in our region.

When Jack brought up "tight w/money" he could have been referring to the whole O&G industry in our country and beyond.  The countries having a majority of their national economy relying only on their Oil Exports (not us, thank goodness) have been hard @ work trying to keep the U.S. from becoming a major exporter by keeping the price of oil low.  That makes it frustrating for shalers of all descriptions, but nice for drivers!

I do hope word is received that someone has been paid for a recent PGE lease. Any boon to local economies is always appreciated.

RSS

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

Badges  |  Report an Issue  |  Terms of Service