Putting several large OGM holdings together to market as production units for shale fracking in more than one shale layer is smart business for landowners and companies alike. In spite of the better leases ($$$'s and protections) achieved by the landowners, companies also come out ahead using technology and single action deals for thousands of acres without creating "bad press". In case you haven't noticed, creating "bad press" isn't in any company's best interest. County-wide landowner groups have become "the norm" in recent years ... different from smaller groupings of landowners within a township.
Seeking the most for the least and can easily be achieved when dealing with a small group, but with minimal lease benefits for the landowners. If Leasing By Itself is all a few landowners are looking for then going this route may be a temporary fix for immediate financial problems. It's unfortunate when people find themselves in this fix, but there are always companies willing to help these folks out.
Misunderstood by some is the concept that a county-wide group will be able to deliver the same $$$ for all townships simultaneously just because of it's size. Companies definitely look @ size, but also important to them is each townships geology and infrastructure, and the depth of company pockets in a specific business quarter. What product from the well will be most marketable when the well reaches completion ... a time frame that may not be a long as it would seem?
The point here: county-wide groups achieve more for their members due to size, but the time-frame is likely to differ from one collection of 3-4 townships to the neighboring group of townships. AGAIN it is the geology, the infrastructure, and the market that drives the timeframe of a deal.
County groups choose to highlight the best their regions have to offer, including the population's pro-drilling attitude when leases are environmentally and owner friendly. If this massive marketing effort isn't done by experienced firms with an established footprint in the energy industry, then resources won't reach their full potential to improve landowners and a region's financial future. Whether a person's acreage is sitting atop a diamond field, a gold mine, or natural gas/oil deposits, not having it marketed and developed the best way possible is simply a waste on so many levels.
This is why county groups are formed & how they deliver.
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Permalink Reply by Jim Litwinowicz on May 18, 2012 at 7:34pm
M & P and Cx-Energy have announced a deal for Mercer Co with Halcon for $3850/18.5% no deductions with a very good lease. Best part is that it only covers deep rights, below 1000' below the base of the Speechley Sandstone. That will allow landowners to lease their shallow rights to a shallow driller and possibly get free gas. (The lease gives Halcon the right to match any offer) I don't know for sure what a shallow lease is worth but I'm guessing that would be another $500 to $1000 per acre for the landowner. Good deal.
We are working with several companies to get a similar deal for Venango Co
We always had attorneys present at every meeting to review any existing lease for free and to answer other questions.
so how busy are these attorneys now..............
hey jim lit have you heard anything on warren county .mainly around columbus pa township .havent heard from anyone in a few months
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