What's going on in your area?? any info???

Just curious...

     I am in Liberty township and a few months ago got an offer to buy my royalties for 1500 to 1800 per acre, but they would do a more in-depth look if I was serious which "mite change the numbers" slightly....even tho I am not drilled or receiving any royalties ..talked to a landsman rite b4 I contacted them and he advised caution as there will be "significant" activity in my area in the "near future"....how about it, anybody else get an offer or hear anything or see any activity here in Tioga Co. ?

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Replies to This Discussion

Permalink Reply by Jesse V. on January 5, 2016 at 5:25am

I'd wait it out if you can. IMHO the minimum royalty is garbage for a royalty. No matter what they are paying for a bonus. If they do hold you, you're bound to the minimum for the life of a well if you ever get to that point. 

Permalink Reply by paleface on January 5, 2016 at 5:56am

Lynn,if you get a no surface take the money.Shell is your only chance of getting into production.If you compromise with them they work with you,if you don't they will drill around you.They have enough land to drill for many years. The company's that paid the big bucks for bonus and royalty's are all in serious financial trouble.

Permalink Reply by Lynn Wigglesworth on January 5, 2016 at 6:12am

I'm not sure why they even want to hold my land; the Kennedy well (the unit I would be in) is an old East test well, and apparently doesn't show much promise. They haven't developed it, even though they've put in wells all around it.

Permalink Reply by Ann Ticopa on January 5, 2016 at 7:10am

paleface:  SWEPI paid "big bucks" in bonus/royalty.  Except, it was to the owners and creditors of East Resources Inc, not the landowners. 

Permalink Reply by paleface on January 5, 2016 at 8:38am

Ann its a different market today,but it does change like the mountain weather.Oil and Gas want the same things we do.The local,state and federal govt.is not on the same boat we are.

Permalink Reply by JOE REDDING on January 5, 2016 at 9:55am

Lynn i would try to get rid of that no deductions clause, that is the thing that can hurt you, i am in a unit and getting more than the same acres next door, i have no deductions and they have them. the bonus was good but the utica royalty was great.

Permalink Reply by N Bohl on January 5, 2016 at 10:46am

Joe - Can you do a guesstimate on the % difference between your non-deduction royalty and a neighbors deductible lease royalty?

I'm just curious.

Permalink Reply by JOE REDDING on January 5, 2016 at 12:43pm

N Bohl, I would suspect it to be around 5% or so, just a guess from what the neighbors are telling me.

Permalink Reply by N Bohl on January 5, 2016 at 1:25pm

Thanks Joe. That's not bad compared to some of the horror stories that have been posted about other companies - it seems reasonable. But it can change - that is why if you had deductions there should be at least some limits on them in the lease. Ideally.

Lynn - it's a tough call to make. At least you are aware of the pros and cons. // Thanks for the posts // Nat

Permalink Reply by paleface on January 5, 2016 at 2:34pm

Shell doesn't give no deduction lease's anymore.For 5% I wouldn't let that be a deal breaker.Its 95% you didn't have before.

Permalink Reply by JOE REDDING on January 5, 2016 at 4:29pm
Lynn, I am sorry about my post about deductions, I ment to say get rid of the " deduction clause" not the no deduction clause, you want no deductions! They can go anywhere and they may not stay where they are when you sign a lease, and they will go up, not down.
Permalink Reply by N Bohl on January 6, 2016 at 2:28pm

Joe - I know it's just a guess but when you replied about my question - is it 5% of 100% - or the equivalent of 5% royalty? Like a 15% royalty was more like 10% after deductions? Thanks again.

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