Update on renewal from Ascent

Sorry to start another page for this update but I cannot find a place on the other sites to reply??

Just so anyone new reading this understands what I am about to write, here is a short synopsis of what I am referring to.

Our lease , with Ascent is up in Oct. of this year.

A company called Purple Land Management contacted my brother in Feb., there are 3 of us on the lease, and offered $1,000 and acrea of a one year lease. 

Came to the house without calling first and my sister-in-law was having a spinal operation the next day or so, and my brother did not have the time to really talk.

My brother told him to come back and he did about 3 weeeks later and the offer had gone down to $500.00 for a year lease.

Anyway, Dustin from the Purple Land Management contacted my brother, a few days ago, and informed him that another company, Halo, would be negotiating our lease.

He would no longer be involved with us.

The guy from Purple Land said he has too many other leases throughout Guernsey County to take care of ours??

Is anyone familiar with this Halo management?

Told my brother Halo would be contacting him in the near future.

Will keep y'all informed about this conversation.

Should be interesting.

nc man

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Replies to This Discussion

Permalink Reply by Barry D on March 17, 2016 at 12:38pm

Jefferson,

Everyone should follow the advice of Nancy...and you.

Just Say No!

Permalink Reply by bo boboski on March 18, 2016 at 8:47am

Let me get this straight. They want to extend the existing lease for one more year? and pay you $500. per acre? If so,not too awfull bad,as long as they are leaving all the landuage alone in that present lease! If they want to extend,AND change things to benefit them,then naaaaa. No Thx. What did they say would happen at the end of that one year? What did they say would happen if you don't accept. Your present lease would expire,you would then have to get released,then you would be re-negotiating a new lease, assuming they are still interested.Or maybe someone else.But depending on just where your property is located,maybe no-one else would be interested?

Permalink Reply by Jefferson on March 18, 2016 at 11:18am

They are writing it to be 5 1 year leases.  The money is also not negotiable each year so whatever you sign this year is it.  They are also redefining "operations", Pugh Clause and a few other things to their benefit not the landowners.  Essentially from what I can tell they want to be able to drive a bulldozer on someones land/unit so you are then HBP.  If you are lucky enough to be leased all 5 years the money is still significantly less than our initial signing bonus from 5 years ago.   There excuse is gas/oil prices are low.  However, they are already going back up.  

Permalink Reply by bo boboski on March 18, 2016 at 1:52pm

Really? what part of , "stick it where the sun don't shine" , don't they understand?  How dumb do they think the people of eastern Ohio are?

Permalink Reply by nc man on March 19, 2016 at 2:17am

Thanks for the help in explaining Bo's question to me, yesterday, Jefferson.

My brother didn't go into detail, other than the $500 an acre.

We said no thanks to Purple!

Purple said they weren't dealing with our lease, any more, and Halo would contact us.

So far no contact from Halo.

nc man

Mike MurphyPermalink Reply by Mike Murphy on March 21, 2016 at 6:16am

As of Sept. 30, EMG, which is trying to raise a new fund, saw things differently. The firm valued its stake in Woodford --- whose second-lien loans traded at 15 cents on the dollar last week -- at 80 percent of investment cost, according to a confidential memo to clients seen by Bloomberg. By the firm’s reckoning, its Permian bet was worth precisely what it paid, and its combined stake in Utica and Marcellus -- ventures that were merged last year into a new company called Ascent Resources -- was up 25 percent ASCENT=McCLENDON

Permalink Reply by nc man on March 21, 2016 at 8:28am

Mike,

I am losted!

Read it over and over and still could not figure out what you are sharing with us.

Could you put this in layman's terms?

Thanks!

nc man

Permalink Reply by bo boboski on March 21, 2016 at 10:19am

My take was; out of all the ventures McClendon got his investors to join in on, ascent is the only one making $,or at least the shares are gaining in worth in a big way.

Permalink Reply by searcherone on March 21, 2016 at 9:13am

http://gomarcellusshale.com/forum/topics/bloomberg-reports-aubrey-l...

Here's where the plain English is . . EMG financial backer of Ascent is in a heap of financial debt which in turn affects what landowners of an Ascent lease are going to be offered.   The old saying is. . .follow the money.

Ascent is not the only company offering these one year extensions. . . Eclipse, Antero and I don't know how many more.

Permalink Reply by nc man on March 21, 2016 at 10:01am

Thanks for explaining, searcherone!

Not the greatest of news but it is what it is!

Is the only thing all of us can do, is wait until closer to our leases expiring??

Would we have more clout, then, to deal with Ascent?

nc man

Mike MurphyPermalink Reply by Mike Murphy on March 21, 2016 at 10:29am

maybe EMG could hold a  fire sale and Ascents leases will be owned by another company

Permalink Reply by Buckets on April 19, 2016 at 1:56am

I would contact other companies in the area and see if they're interested.  There aren't too many out there doing leasing but there are some.  As someone mentioned already, there's Eclipse Resources and Antero. 

You can wait until your lease expires but you can also contact them now.  Explain that your lease is set to expire and the date.  If they're interested they may wait to contact you once it's expired but most likely they'll want to sign a contingency lease.  This is a regular lease just means it will kick in as soon as your old lease expires.  Had a friend who signed one of those a few years back.

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