I've been offered $500/acre + 15% royalty for a five (5) year lease on two parcels I own in Tioga County, PA. It seems low to me but I don't know the going rate of late and would love to. Can anyone share with me any recent amounts of $igning Bonus/Consideration rates per acre in Tioga County, PA? Thanks in advance.
There are land agents using the name Continental wandering around Tioga and Potter counties. They're working for Travis Peak. Before long I believe the company "heads" will be doing their own dealing w/stronger offerings. Getting the land agents in the area first has always been every O&G firm's way of picking off individuals not willing to seek the end result on a bigger scale. JKLM did the same thing if you recall in Sweden Twp. ... starting @ $300 AC then coming back later @ 4 times the amt. offered. Not really great numbers beyond that but if folks stay focused on #'s and not clauses this story will never change.
Continental is a "Broker"/Land Company. They were buying leases for Chesapeake in Tioga County 4-5 years ago prior to Chesapeake cutting back on their acquisitions in the Marcellus area. It'd be good to know if they are really leasing in Tioga again and for who. There are so many layer to pull back from every offer that is ever made. First you have to identify is the Landman is contracted by a Land Company and then determine who that Land Company is has been contracted by and is buying leases for. It's always best to get confirmation by either requesting a retainer letter or contact the Company who's name is on the Lease. And of course check that companies track record for activity in your county and state. Awhile back a variety of companies were buying leases and not paying on them until they could flip (sell) them to the actual operator in that area for a profit. Thus is the Oil and Gas Leasing Onion.
We just today received an offer in the mail today from Helm Energy out of Colorado. This is an offer to buy our OGM's @ $2,750/net per acre. And I quote part of the letter: " Although, we recognize that natural gas development has slowed in the northern tier due to a combination of marginal drilling results as well as the collapse in natural gas prices, Helm is still interested in pursuing the acquisition of oil and gas interests in Tioga County". Just an F.Y.I.