Harrison County lease rates

What is the on average rate for mineral lease on property in Harrison County, WV?

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Permalink Reply by James Harber on May 9, 2011 at 11:21am
Its my business to know these things, haven't been in the oil and gas business for 25+ years for nothing. I don't have the figures on the gas that is coming in off the same well, but its really good too, know why i know that? They immediately ran a pipeline from that well out after drilling it. They almost never do that, they drill several wells, cap them and come back a few months later to runt he pipeline, but not just for one well, a supposed "test well". If that is a test, then i'd say it came in AAA+, just a awful good indication as to what lies undreground in the Utica formation. That is why i have always said, wait a little while before leasing your royalty. My advice has always been let them drill a few wells and wait and see what those well produce before leasing. Happy Leasing, ya'll.
Permalink Reply by scott jackovitch on May 9, 2011 at 12:41pm
That is wonderful news James.  Thank you for the good info.  I have property in both Archer and Stock townships . Do you believe that Stock is as good of a prospect as Archer ? 
Permalink Reply by James Harber on May 9, 2011 at 1:25pm

Scott,

Archer is very good, New Rumley also very good, and I'd say Stock may very well prove out to be strong as well. Both the Buell well and the Jewett Sportsman Club (the new well) are in Archer Twp. It is my belief that those 2 wells alone will both prove to be highly profitable. If they are, and we already know the Buell well is doing exceedingly well, then it should be a pretty solid pattern for other proposed wells to be drilled in the area. As I learn more, will pass it along and should you learn of any new findings i am sure we would all appreciate your sharing the information. As i always say, time will tell and in this case, time is on your side for a change.

Permalink Reply by Hunter on May 9, 2011 at 2:36pm

James,

 

Do you have any info on possible wells or info on green township?

Permalink Reply by scott jackovitch on May 9, 2011 at 2:59pm
James how does the 1000 barrels of oil per day stack up with other big oil areas like Texas or Louisiana ?
Permalink Reply by Josh on May 9, 2011 at 3:05pm
give me a call if your up
Permalink Reply by James Harber on May 9, 2011 at 4:09pm

Scott,

It doen't matter where you are, 1,000 barrels a day is "Big" Of course, you realize that as a rule CHK will drill more than just one well on a pad site. That might not be the case with this well, since the pad sits on top of a ridge with limited area. But it wouldn't surprise me to see CHK still drill other wells in the leased area. I saw a copy of the leased area once and it was 177+- acres at a running South, SW of the pad. There is alot of area in 177 acres, I guess we will just have to wait and see.

Permalink Reply by melinda golden on July 20, 2011 at 8:31pm
Robert, you are referring to Harrison Co. WV ?? the origination was for WV when this post first started but the other Harr. Co. got confused & started their blogging. I think Scott is referring to Ohio & not WV. If you refer to Laura's comments to me you will get the going rate in WV. DO NOT let these landmen make you feel small, they think we are some dumb people here in WV. Though I am not an expert by any means, I have learned some things & would be willing to help you, as much as Laura would also, I believe. Kindest regards, MG
Permalink Reply by Keith Mauck (Site Publisher) on May 4, 2011 at 3:48am

Please be sure to join the Harrison COunty Group

http://gomarcellusshale.com/group/harrisoncountyohio

Permalink Reply by Amy D. on May 9, 2011 at 8:52am

I started this discussion for rates on Harrison County, WV which contains Bridgeport, WV. Is everyone on this talking about this county or are you all taliking about one in Ohio?

 

Permalink Reply by James Harber on May 9, 2011 at 10:22am
I was talking about Harrison County, OH.
Permalink Reply by Robert Chiasson on May 9, 2011 at 12:05pm

I was writing about West Virginia.  Harrison County WV appears to have very good Marcellus, with significant liquids.  There likely is a (reasonably thick) layer of Utica down deeper but I haven't heard about any drilling into the Utica under Harrison County WV so it is highly speculative (in contrast with Harrison County OH which is focused on Utica.)  We were offered $500 per acre and 1/8 royalty (that is the legal minimum).  We also have a phone message from another driller. 

 

We want to find the other heirs and to get in touch with the neighbors, but we are not in any hurry to sign.  The price of Natural Gas is way down now.  It should go up over the next few years as a large number of old coal burning electric power plants reach the end of their usefull life and are replaced by Natural Gas plants (because they cosl less than half as much to build and run as new coal plants, even if the price of gas were to double.)  When that happens the drillers should be able to afford to pay a better bonus than now.  Also, when drillers sell leases to each other the buyer often allows a 20% royalty.  The land (rights) owner gets 12.5% and the middleman keeps 7.5%;  I would rather get 20%. 

 

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