offers to buy OGM in Eastern Kentucky

  

  I've heard of two offers ,one for 1000.00 an acre for100% or 500.00 an acre fot 50%. And another one is an offer of 1500.00 an acre.Don't know any details, has anybody heard of any ?

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Permalink Reply by roadbuilder on August 17, 2015 at 12:52pm

 

   Is this how it started in the Marcellus ?

Permalink Reply by Dan on August 18, 2015 at 1:54am
Not sure what offers to buy were at the start but as the wave moved West from PA into Northern WV & OH the first lease offer we had was $50/ acre to sign w/ min royalties. Of coarse each time bonus offers went up the landmen said this was the best it would ever be. A few in our area signed for $5 bonus. Offers eventfully were over $12000 before the price crash
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 18, 2015 at 2:16am

roadbuilder,

     Kentucky and Wayne County WV, offer to lease for $300 an acre. As I have said the Rome Trough in this area has 16 oil and gas plays, so as long as WV doesn't implement forced pooling, you should be able to hold out for $8,000 an acre as was offered in Greene County PA (Also in the Rome Trough) before OPEC lowered oil prices.

This should come to pass by 2017 in my opinion.

See you in Wayne County Friend. Ron Hale

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 18, 2015 at 2:49am

OOPs,

   My edited response was deleted and the short response only showed up.

Go to FORUM at the top of the page, select COUNTY GROUPS, then locate WAYNE COUNTY WV for some discussion on this topic.

See you in Wayne County WV and on the Wayne County WV Group discussion Friend.

Permalink Reply by Bill Barnaby on August 18, 2015 at 5:54am

Ohio lease offers went over $7000 an acre + 20% royalty, so keep that in mind. When it started, it was $10-$250 an acre, a year later, 3k+ so on and so fourth.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 19, 2015 at 3:04am

Bill,

   That reminds me, the Bad Lease Discussion on this website that was started due to an O&G company trying to take advantage of a land owner included a paragraph that stated the royalties would be paid off of the profits of the company not off the value of the well products that come out of the ground.

Those greedy folks think of everything to try and prevent paying the landowners. I have to wonder how that works with PA law which says that the landowner will be paid a 12% Royalty?

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