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Permalink Reply by Bullfrex on October 6, 2017 at 8:09am

Is this Tioga Co., PA? Which township?

With whom did you sign the lease, 10 years ago?

Did they ever drill, even a vertical to HBP?

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Permalink Reply by Deb Reynolds on October 7, 2017 at 2:32am

yes, sorry. This is the Tioga county site, but I forget that doesn't show when the post goes out to all.

Charleston Twp. (My parents are in Delmar, near the Anthony)

Original sign with East, renewal with Shell. 

Topholes in both. 

We get shut in royalties on Sevem. 

Fenton never got unitized as far as I know. 

thanks!

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Permalink Reply by Bullfrex on October 7, 2017 at 5:09am

Fenton (probably) never had a well drilled, while Sevem and Anthony have wells (probably verticals to HBP) with spud dates of 1/5/2011 and 7/8/2010, respectively. They are both shown as "Regulatory Inactive Statue"....DEP speak for nothing happening there.

Shell has been cautiously developing Tioga County, at a snails' pace in the last twelve months. The Fuller (Middlebury Twp.) is a four well Utica pad that has been completed and is now in production. The Kennedy (Delmar Twp.) is an eight well Marcellus pad just completed and ready for production. Shell is active, with an emphasis on larger pads and well numbers.They appear to be testing the Utica at various locations in the county.

I do not know of any other active well sites in Tioga Co., but others in the area might be able to help here.

Shell is a quality E&P, probably the best one could have as a producer. Patience is the key, along with an increased takeaway capacity and an uptick in NG pricing. That will get things moving quicker.

I wish you well and hope they come your way in the near future....best of luck to you!!

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Permalink Reply by Deb Reynolds on October 7, 2017 at 3:28pm

thanks! will let you know if we hear anything re: renewing our lease. 

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Permalink Reply by Michael Sasarak on October 14, 2017 at 1:35am

Hi, I just received a letter from Seneca about a lease. I have a few acres. I'm not sure what the current rate is or what others are being offered, but they want to do a 10 year lease at $1,500/ acre. Does this sound reasonable? I know that the gas activity has picked up quite a bit since the slump and the last lease they wanted to do a 7 year for $1,500/acre but I turned it down? Should I ask for more? Thoughts/opinions?

Has anybody else gotten a lease renewal letter or a letter to start a new lease or recently signed a lease agreement lately?

Thanks

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Permalink Reply by Bullfrex on October 14, 2017 at 2:19am

Questions:

Where are your rights located, township, etc.?

Any active well sites nearby? Do some homework, ask the neighbors....it could signal a trend to develop the area.

From recent history, the $1500 seems to be the current ceiling for offers for most of the players in Tioga Co..

The important part of the offer will be the addendum wording; gross at the wellhead, no deductions, right to audit, and of course, the royalty percentage....15% should be achievable, with 18-20% being the 'wish list' target.

Leases longer than 5 years with a 5 year renewal, e.g. a 10 year lease also appears to be a recent trend in lease offerings.

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