Crawford County Pennsylvania

Any updates on leases that are circulating throughout Crawford County PENNA.  What companies, examples of offers being made, any issues, folks to be wary of etc.

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Permalink Reply by gary smith on March 8, 2012 at 8:27am

they have a verticle in springboro producing 400 barrels of oil a day. alot of the shallow wells here have produced oil . that oil came from somewhere. its here. the utica here is at the same depth as that in carrolton ohio,according to the isopatch maps. and look how many well have been drilled in ohio. not that many for the amount of land leased. they started down there because thye ohio river is there and they can barge the oil.

Permalink Reply by warjr on March 8, 2012 at 11:08am

yep.  many leases that were signed a few years back have been sold to some of the biggies, just haven't heard enough about it yet I suspect.  That's why these land lease folks are crawling around getting folks to sign lowball offers so Shell and Exxon and some of the Foreign Companies who want into PENNA BADLY and when they sell to the biggies they are getting $billions.   One of the early players, cannot remember name, based out of Pittsburgh sold a huge chunk of leases over to Exxon I believe just a few months ago.

Permalink Reply by warjr on March 8, 2012 at 11:21am

shallow wells all along rt 18 between Greenville and Adamsville and on up over the hill towards Jamestown as well.  All less than 10 years old and some younger.   OPut towards Atlantic and on past as well.  Oil and gas is in the County for sure.  I have no idea how well they are producing but I know they connected a gas line down to the one off of Patton Rd off 18  and I do not think it went to any residential house as I saw it being put in across Desik Rd maybe 2 years or so ago.  D&L wanted pipeline right-of-way across our property for such several years bakc and told them not interested.

Permalink Reply by warjr on March 8, 2012 at 11:28am

petroleum is used in all sorts of stuff, plastics is the biggie, lubricants, asphalt, and many other things that are so widespread in consumer goods so there will always be a market for oil as well as NG.

 

Permalink Reply by warjr on March 8, 2012 at 11:26am

for sure.  plenty of oil and gas under PENNA.  They have known that for years now.  Just a matter of how much it costs to get it out of the ground and how much they can sell it for.  I had a meeting with a exploratory owner a few years back who was looking to buy a 2nd home down here my way.  Back then he told me if a barrel of oil went to like $88.00 per the drilling would start and he was correct.  He also said that once it below a certain price they would also cap the exiting wells and stop the drilling as well.  Not that they won't come back but as we all now know oil i s well over $100 per barrel and naturnal gas is the biggie.  Proices went down recently on NG so some drilling rigs were pulled but they won't be gone for long.  They are working on pieline acquisitions already across parts of PA, WVA, and MD to get NG to Baltimnore.  LNG is the next biggie. Liqufiy it and export it to Europe and China where their demand is much higher than here in the U.S.

Permalink Reply by warjr on March 8, 2012 at 7:32am

A little advice.  Beware that some on these forums can actually be land lease folks as well so watch the advice that you listen to.   I would suggest that when one is contacted by land lease folks that we share our experiences and the gist of what they are offering so some can beware of what is happening out there.

I will share my past experiences for our land in Crawford County.

1.  Several years ago we had a small portion of our land under lease with a local player back then.  They gave us $300 a year for 5 years for a lease on 30 acres.  Within a short time we received letters that they were drilling a well on the land next to us trying to pressure us to sign up all of our other acreage.  I knew at the time nothing was happening and that is why we kept most of our land out.  They actually had a guy show up on our leased land and stuck 4 pieces of orange tape on some bushes in our field and spray painted in blue a location for their access road to our proposed well site.  They did the same on the property adjacent to us.  Sent us a letter that this well on the adjoining property was in close proximity to our well and again wanted us to grant pipeline rights-of-way and advising to sign up our remaining acreage. Nope never did and after 5 years they were gone and nothing happened.

2?  Last Spring another fellow shows up one weekend and spends hours with us and made numerous phone calls until he went away.  Was offering us, are you ready,  $100 per acre with their big jumbo 5 year upfront bonus.   Listened, got copies of his lease, asked lots of questions.  He told us no pipelines to move gas were in place, the business was leaving the County and would not be back, get in while you can, and all sorts of nonsense.  Nope did nothing.

Last week another gentleman from a company that I know is leasing and sitting on leases in the area around us calls me.  Offers $1000 per acre for 5 years and the standard 12.5% just like the other 2 had also offered.  I will play dumb as long as he wants to supply info to me.  But no way I am signing for $1000 an acre at this point.

My point to all of you is this is early for Crawford County and if things play out things could get much better so just be careful what you commit yourself to.  Get good sound advice before signing any lease.  But again if you feel comfortable play dumb with these folks and see what they are offering and then share with your friends and neighbors as well as on here.  I won't say which company did what but one was D&L Energy and another Reserve Energy and a 3rd was Guardian Exploration, LLC.

In my case this represented going from $300 a year, to another offer that would be $37,500 gross up front, to the last at $375,000 gross up front.  That last number is tempting to some but what a difference getting 16-18% on production vs 12.5% over the lifetime of a producing well or getting $2000, $3000 or possibly more per acre with patience.  Represents 10 years of patience and some homework of course.  No guarantees at all and I can live with that if I have to.  Of course nothing in all of this means anything until one actually has a check in hand and you better have a financial / tax  plan ready as well if you are sitting on  a decent  amount of acreage as all numbers they throw around are before taxes and of course you need to read and get expert advise as well on the amendments they have and which you may wish to add if the time comes to consider / sign a lease.

Permalink Reply by warjr on March 8, 2012 at 7:36am

general question on this site  I would like to remove my entire name as being visible when I post and have not found a way within my profile to do so.  Any help out there?

Permalink Reply by CL on March 8, 2012 at 10:10am

simply go to your settings in the top right area of this page and change your name

Permalink Reply by Linda A on March 8, 2012 at 11:06am

was going to tell him the same thing - i first signed up w/husband's name, then they thought they were talking to a man - so changed it to my name, and thought - gheeeze, why give them my last name! lol

Permalink Reply by Dave on March 13, 2012 at 9:00am

Does anyone know if the Crawford county landowner group start talking with any energy companies yet?

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