Current Tioga County lease offers

My family was presented with an offer last week for a parcel in Morris township.  This coming a day before Shell announced their impressive initial results with the Utica drilling in neighboring townships.  It was rather underwhelming based on bonuses and royalty rates in Southwestern PA and Eastern Ohio which seemed to be in the $6-8,000/acre range and up to 20%.  The recent announcement regarding Shell's success in Tioga county indicated the production was as fruitful as the best wells in Eastern Ohio.  The offer was $500/acre for 5 years @ 15%.  Am inquiring if anyone else has received recent offers in the area and if you are inclined to sit this seemingly low-ball offer out and wait...

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Permalink Reply by Pete Latta on September 11, 2014 at 12:52pm

SWEPI offered me $1000, 12.5 for ten years no extension. Location Deerfield Township

Permalink Reply by paleface on September 11, 2014 at 1:25pm

 There is other companys leasing in Tioga county.They are mailing offers out to people.

Permalink Reply by James Young on October 10, 2014 at 3:44am

Not sure which "viable companies" that would be, Seneca and Chief are DONE in Tioga as of this year... They have all the land tied up that they want.... quoted right from them,  and if you look at all the DEP issued permits"held by production" that have yet to be drilled and developed by SWEPI,  they have enough land already tied up to last everyone's lifetime that is currently on here... without leasing another acre.... 

Permalink Reply by Robin Lynn on September 15, 2014 at 5:11am

Hi Jack Young - You made a comment the other day re: offers decreasing the further away from the Neal/Gee pad one owned OMG's.  Is this in your opinion, a very short term view?  Due to expenditure's to date there? If one puts any stock in the value of the TOC map, It appears the southern half of Tioga county might prove more fruitful than the northern half ?  Thoughts?  Also, what does  "HBPíng" stand for?

Permalink Reply by Jack Young on October 6, 2014 at 5:20am

Sorry to be slow to reply - I get too busy to post sometimes. I wouldn't give that TOC map any credibility, as there's virtually no data available in our part of the state. It's 99% speculation. Right now only Chatham and Middlebury Townships (and adjacent parts of a few other townships) are seeing improved lease offers. Going south means deeper wells, and at least one company I spoke to suggested that there's a subsurface feature near Wellsboro that may mark the southern end of the Utica play. So I think that if the play does extend further than Shell's core area, it will probably be to the east or west. And possibly a little ways south, but certainly nobody is claiming that the entire southern half of Tioga County will be productive.

HBP means "held by production", although often the well involved is shut in so the production is a legal fiction. Shell has done quite a bit of this - it's cheaper to drill a vertical well and let it sit than it is to keep renewing leases!

Permalink Reply by Frank Walker on October 30, 2014 at 5:09am

Jack wrote:

"So I think that if the play does extend further than Shell's core area, it will probably be to the east . . . . "

Jack:  From your keyboard to God's ear!  ;-)

The Jackson Township Utica well should offer more clues . . . if any of us ever become privy to them.

Permalink Reply by Jack Young on October 30, 2014 at 11:20am

I'm not sure that well is going to be drilled after all. No spare pipeline capacity.

Permalink Reply by Frank Walker on October 31, 2014 at 8:19am

Jack

Appreciate the update.  Thanks!

Permalink Reply by Victoria Ayers on October 4, 2014 at 3:20am

$1,000/acre, 15%m the week after the Neal/Gee announcement.

Permalink Reply by Janice L. Hancharick on October 5, 2014 at 10:04am

Leasing has been ongoing in Tioga and nearby Potter for months.  First advance offers from JKLM were $300 AC, 12.5% and unfortunately some jumped @ this.  Possibly thinking this was their last chance to get something out of the Marcellus/Utica plays they'd been hearing about for years.  Not being a drilling company this was a smart move on JKLM's part, knowing what was in the wind for further development @ $1,200 + AC and right around the corner.  It takes money to make money!

Take a deep breath and hold on to your unleased AC.  The better days folks heard about are not that far off.  Upfront leasing numbers are like ketchup on a superb piece of meat.  The red may grab one's attention first, but unless one is simply in love with ketchup it's the meat underneath that satisfies most of all.  Solid lease deals run deeper than the "green" being dangled right now.

Permalink Reply by Jeff Updegrove on October 6, 2014 at 2:15am

Low ball offers continue in Tioga County, I was offered 300.00 per acre and 12.5 %  what a joke !  We hope that prices improve but we don't see any signs of fair offers. 

Permalink Reply by Jack Young on October 6, 2014 at 5:10am

Janice, I assume you know who JKLM is. If so, suggesting they aren't a drilling company shows that you aren't being completely up front with people on this forum. I've been told that your 4-County Landowners Group and CX Energy are trying to steer people away from JKLM, so maybe you ought to explain your position in more detail and let folks know why you're being so negative on JKLM.

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