Chesapeake In Trumbull County

I have a friend who was approached by a Chesapeake lease agent.  The agent offered him $1,500 an acre for 10 years.  My friend declined for two reasons:  He already had two wells on his farm that were actively producing for a company named BOKOR.  He also wanted a lot more per acre on his lease.  The Chesapeake agent told my friend, their company wouldn't try to buy out BOKOR given that he felt BOKOR would probably want a million dollars per well. He also said Chesapeake would have to hit at least one good producing well before they would ever consider giving land owners much more than $1,500 per acre.

Views: 230

▶ Reply to This

Replies to This Discussion

Permalink Reply by Tanya Gabriele on March 13, 2011 at 1:15pm

Sorry Tommy.  I didn't mean it that way.  The Chesapeake agent made my friend believe that BOCOR would want a million dollars to sell the lease to Chesapeake.  The agent said they would never settle with the "Clinton Queens" for that.  The Chesapeake agent was from their Akron office.

I am very grateful that you told me the "Clinton Queens" were already negotiating with Chesapeake.  If they come to an agreement, I assume my friend will be able to negotiate a contract with Chesapeake over the Marcellus.

I'd like to know why Chesapeake is bothering with the Marcellus.  Wouldn't it be more cost effective to go for the Utica?  I heard you don't have to go through the trouble of horizontal boring to release gas from Utica.

Thanks a million for your input.

Permalink Reply by Tanya Gabriele on March 13, 2011 at 1:49pm

I know that many of the old leases did not mention how deep or from what shale formation they were recovering gas and oil.  The agreement only mentioned the lease of oil and gas rights.  People only assumed access was limited to the capability of the company's equipment.  If Chesapeake bought a contract off another company that was written that way--wouldn't the land owner have to agree to the same terms? 

Permalink Reply by Tanya Gabriele on March 14, 2011 at 12:34am

Where are you from Tommy?  Are you an attorney?

Thanks Tommy.  I feel bad for my friend.  We'll have review his lease to see if BOCOR made any specification when they made the lease with him. 

Legally, shouldn't there also be terms written in a lease that states the company can sell your lease? 

Permalink Reply by Tanya Gabriele on March 14, 2011 at 2:59am

Thanks Tommy.  A part of me doesn't want to tell my friend.  He's an older guy with heart problems.  Were you always a lease agent or did you work on the rigs for a while?

I've been looking for work.  I saw a posting for a lease agent.  I wondered if they trained you for the position or if you had to have prior training.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service