Artex offer

Hello, I'm new to the forum and seeking advice and insight to a recent offer from Artex in Marietta Ohio for our families property in Perry County. Artex is seeking our approval to do 3D seismic with option to lease. The Utica and Point Pleasant is excluded. Artex wants the Knox Formation. My question is are there any formations in the Knox that can be horizontally drilled. From my research Artex only drills vertical wells, but I'm just thinking of the future. Thanks in advance.

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Permalink Reply by James Vanderink on July 23, 2014 at 1:38pm
Perfect.. You are in the JV area.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on July 23, 2014 at 3:56pm

Gary,

     I looked at a parcel of land in WV that the owner said didn't have an Oil & Gas lease but some gas people paid a small fee each year to come by and do seismic testing. I asked to look at the document and received a cover letter asking to do seismic testing which was followed by a 2 page oil and gas lease that the owner had signed without knowing what it was.

This sounds similar. Read the document they hand you to sign, don't sign it but take it to a lawyer and tell him what you were told and see what he says about the document.

Consultations are free so make sure the lawyer doesn't try to charge you later or tell you that "You belong to me now" (seen that already), you have to sign for a lawyer to own you.

Most Oil & Gas companies want it all and don't want to let lose when the lease expires. When they drill they can't stand to give away their money to you since you did nothing but own the land. So guess what, they ignore the lease and do what they want (seen that already as well).

A seismic testing Request and a lease are completely different documents.  Go to alov.us and take a look at a lease and the seismic request form.

Next thing you know they'll attach an addendum for you to sign over your pipeline right of way.

One more thing, never, never, never sign a document someone brings to your door.

Did I tell you, "Money Brings Out The Worst In People, especially when it's your money".

Permalink Reply by Dexter Green on July 23, 2014 at 4:11pm

I've seen this seismic contract/option to lease.  Artex isn't stupid.  They're not going to pay for a lease if the seismic shows a property isn't promising.  They also want to get the data and then avoid going through negotiations because, as is obvious, if they shoot seismic then try to lease you it means they found something and the landowner has immediate leverage.  They're looking to avoid that entirely.  They're also trying to keep any competition far, far away, by getting people locked down before word of good seismic data can spread.  It's a really good strategy for them.  Not so much for the landowner.  I'd tell them they can shoot all the seismic they want but the lease has to be a separate negotiation.  That way you get a lease only if your land shows what they are hoping it shows, which is exactly where you'd be if you signed the seismic/lease option, only in this scenario you have a little bargaining power.

Permalink Reply by James Vanderink on July 23, 2014 at 10:46pm
All solid advise for Gary.

Dexter
Ron
Alan
anybody,
This well going in just north and east of Gary is a 3 way JV with Artex/Enerves/CHK. Covered formations are base of the Trenton to the base of the upper copper ridge. We all know that the Roserun, Trempeleau etc is in there. Any guesses as to what formation they are looking at in the Exploration Agreement signed(9/12/2012)?
How does CHK fit into this vertical drilling campaign. My homeplace is within a few hundred yards of this well but I haven't been able to get back there for about half a year.
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Permalink Reply by Darren McCauley on July 24, 2014 at 3:55am

I am in Clayton Township and so is my Dad. Artex was after my Dad for 3 years to lease then the wanted the right to test. Then they wanted the right to drill vertically.

I know nothing about this business except what I read from good people like all of you.

However, let me say that all too often I read responses regarding the legal/law side of things. As land owners if we assess a situation on the basis of whether it is legal or not, I think we are being naive. 

Is there a chance that Artex will drill into these lower formations so they are able to poke a hole in the Utica layer to see what is there ala Fairfield County Sugar Grove?????? This is why there was no permission given to Artex to do any of this from Dad or myself.

Permalink Reply by James Vanderink on July 24, 2014 at 4:10am
I met your father about 15 years ago. "ala Fairfield Sugar Grove" ?
Permalink Reply by Darren McCauley on July 24, 2014 at 4:14am

Really? Great guy .. I am biased. Hopefully you found the little farmer pleasant. Thanks James. How did u meet him?

Permalink Reply by Darren McCauley on July 24, 2014 at 4:21am

I was told that several years ago there was a vertical well drilled in Fairfield County near Sugar Grove. When the driller hit the Utica Layer on the way to a deeper formation, the output was 300+ barrels of oil per day. 

This came from a trusted source but I cannot confirm this event. I saw an older thread on this site that made reference to this event

Permalink Reply by James Vanderink on July 24, 2014 at 4:31am
Well if your dad had a Roserun well drilled by cgas about 15 years ago I think I remember him. The well in Fairfield is the Leitnaker unit.
Permalink Reply by Darren McCauley on July 24, 2014 at 4:34am

Bingo. You have the one and only. Thanks for the information on the Fairfield County well. How true is what I heard about that well? Do you know?

Permalink Reply by Dexter Green on July 24, 2014 at 4:39am

It was a great well, but it was also the only one of note.  It is the outlier to end all outliers.

Permalink Reply by Darren McCauley on July 24, 2014 at 4:40am

Thanks Dexter

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