Replies to This Discussion

Permalink Reply by scott peterson on July 28, 2021 at 8:14am

I havent been actively tuned in for awhile since things went dead but hoping it will ramp up again. Any updates from anyone would be appreciated!

Permalink Reply by Adam Galbreath on January 22, 2022 at 6:21am

I have property in Madison Township off Brushy Fork Road.   KWGD is working on a new lease for me after I was contacted by Halo Land Management.   I'm thinking the Raber well off of Hover Road is slowing to the point they are going to change direction and drill NW.   

Anybody else getting a new lease in Madison Township?

Permalink Reply by Robert Bond on January 22, 2022 at 6:23am

Thank you for your reply let us hope for more good news.

Permalink Reply by MA on January 26, 2022 at 5:09am

UPDATE 1-26-2022 for Madison Township, Guernsey County, Ohio

After two years with no action - I finally received a Proposal from Ironhead Resources II, LLC

Here is the Summary - 

(A) Primary Lease for 5 years - Paying $500 per net acre paid each year from Year 1 through Year 5

Optional Extension Lease for 5 Years - Paying $1000 per net acre paid each year from Year 6 - Year 10 (Lessee's sole discretion)

(B) Royalty

Oil 12.5% of the net revenue realized by Lessee

Gas 12.5% of the net revenue realized by Lessee

(D) Shut In

$25 per net acre per year

No mention of Exhibit A which would be used to address Water Usage, Damages and Supplemental Surface Damage Payment.

While this proposal is no where near the previous two lease agreements in terms of payout or royalties - at least it is something to work with. 

Anyone have thoughts about working with Ironhead or the above proposal?

To Adam: 

What are the details of the proposal if you don't mind sharing? Maybe we can see if both companies are giving equal proposals?

Permalink Reply by MA on January 27, 2022 at 5:03am

UPDATE 1-27-2022  - when I asked for clarification here is what I got...

(A) Primary Lease for 5 years - is a ONE time Payment of $500 per acre that covers 1-5 years, if reupped in year 6 it is a ONE time payment of $1000 per acre. (What a difference as it is a one time payment as opposed to each year!)

Royalty is now up to 15%

Exhibit B Well location Fee of $30,000 flat rate

Ironhead stated they have 400 acres leased in the immediate area and 10,000 in a larger area.

I also reached out to Halo Land Management and they are forwarding my information to a Landman at Ascent Resources.

I am still gathering information so no decision made yet. I will keep everyone posted.

Permalink Reply by Adam Galbreath on March 16, 2022 at 6:59am

MA,  my since apologies for not getting back to you.   I"m working with KWGD and still haven't seen a proposal for my lease via Halo.  However, I believe it will be between $2700 - $3000 per acre plus around 16-18% royalty.  5 year lease with 5 year renewal. 

Permalink Reply by Adam Galbreath on March 16, 2022 at 7:12am

I know there are many variable but I'm trying to understand a range in expected Royalty payments based on 18% royalty per acre for a Good and Very Good producing well. 

Permalink Reply by Adam Galbreath on March 18, 2022 at 3:30am

Just looking for a range so I can set my wife's expectations  ;-)      I heard a couple years ago that a 20% royalty for a good well would provide a gross payment (before any expenses) around $700 per month per acre but I don't know if that's high/low.   

Does anyone have an idea of a range one would expect to get per month per acre for 18%?  

Permalink Reply by nc man on January 27, 2022 at 7:41am

Hey Bo!

How are you and everyone in Ohio?

I check the site, from time to time, but no one is there??

I need some help from y'all that can direct me to the next step.

My lease with Ascent expired in Oct. '21 and Ascent was not interested iin renewing my lease.

I am still waiting for my release papers, from Ascent, even after contacting Ascent many times to have them sent to me.

Been told the Land Man has my lease? What is a Land Man and why would he be walking around with my lease?

Could someone explain how I or the County Recorder can get my release papers, so I can, hopefully, be free to lease again with another company. With the oil at $84.00 a barrel I would think someone would want to buy my lease?!

How do I go about, trying to lease with another o/g company? JUST CURIOUS-----has  anyonelse's mineral rights been on K&R's property and you were leased by Ascent or another company and what is your situation now?

There has been no drilling in the 10 years we have had a lease with Shell and Ascent? K&R  has approximately, 2000 acres, but has no drilling done, ever, on its property. Doesn't it seem very odd that these two companies paid out a lot of $$ to lease K&R's land and our lease  $$   and yet they never drilled to try to recoup some of their $$ back!

I sure would have lliked to experience receiving some royalties! :D

Thoughts, anyone?

Thanks and stay warm up there! 

ncman

Permalink Reply by MA on January 27, 2022 at 9:42am

To NCMan:

I previously had a contract with Eclipse. When they decided not to pay on year 4 of an 8 year contract - I contacted them March 2020. 

They stated that they were moving in a different direction. So as per the paragraph in the addendum to the Oil and Gas lease titled Recordable Release, “….upon written request, Lessee shall provide Lessor with an appropriate release or discharge suitable in form for recording….”

I requested that the lease be released via email and they stated that they will send a copy of the recorded release to me as soon as we get it back from Guernsey County. While I never checked the office or got the email  - I did have a landman reach out to me so it must be released.

My suggestion - is to send a registered letter or get an email response from someone at Ascent and ask for them to release your lease as per your lease contract. If you are in the area - you could always go to the Guernsey Court House or contact them directly & ask them how to be released.

In the meantime, here are two groups that are showing some interest in Guernsey County (as of Jan 2022) that you could reach out to:

Halo Land Management, LLC - Email: ann.titus@haloland.com

Matthew Riva, RL - mriva@ohiovalleylandservices.com

Good Luck.

Permalink Reply by nc man on March 7, 2022 at 10:26am

MA----

Thank you much for your great info.

I apologize for not answering you back until now. I was not registered on this website and jsut saw your reply.

I have contacted both o/g companies you included but they are not interested.

When we signed the lease with Ascent, in 2012, the Recorder's office said we were in the a hot spot!

We were excited but ten years later and there was no drilling whatsoever!

We do not own the land , just the mineral rights.

The land belongs to K&R Conservation but no drilling on this land.

I can't believe Ascent paid us good $$ for 10 years (2 leases) and never even tried to recoup some of that back, by drilling!

Why would Ascent lease our mineral rights, which is on K&R property (79.23acres), but no drilling on K&R but all around K&R property was drilled?

Wouldn't you think Ascent would know that K&R would not allow them to drill on their land, if that is the case? Ascent had to pay them for leasing their land that our mineral rights are located.

Ascent was not interested in a 3rd lease, as of 10/2021, thus, that is why I am going on the search for another o/g company who might be interested in our lease.

Again, thank you for your time to answer my question.

I am totally in the dark at how to do this, so your help was much appreciated.

Have a great day!

NCMan

If anyone else can give me any more info, that would be great!

Permalink Reply by Robert Bond on March 7, 2022 at 3:11pm

Talk to an Attorney that know gas and oil leasing and ask about filing a statement of non-compliance with the Guernsey county recorder thus advising all that your lease is over with.  Have heard that this can be done when oil company does not do it.

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