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 james on September 7, 2014 at 3:34am
I would tell them to hit the road, they know the gas is there. They should be paying $5000+ per acre and 20% royalties. If people quit signing for nothing then they would start paying better prices IMO.
Permalink Reply by Rich on September 7, 2014 at 4:02am
7000per acre and 22.5% Roy. No deductions!!! To start with!
Permalink Reply by Gringo on September 7, 2014 at 2:18pm

If you listen to those 2 you will get $ 0 bonus 0 % and watch your neighbors get rich, they have no idea what the situation is here in Tioga Co. Since Swepi sometimes is the only company for miles your options are limited. $1500/ 15 % is the best you will get from Swepi and that is when they are putting together the unit. There is more to the story than just %'s. I would take 15 from swepi over 20-22.5 from Chk all day long.

Permalink Reply by Tom Brian on September 8, 2014 at 12:06pm

Bingo -  Gringo

Am onboard with SWEPI they are  the only ones in Tioga County able to put together the complete program to develop northern Tiogas multiple layers of shale and give the landowners a fair deal, going so far as leasing small town properties and cemeteries, had a call from a gas and oil "company"  from texas last week with a 3 year offer of 2% and $200 dollars MORE than shells standard lease, looked them up and found that it was a real  2 person co. with a 1 year history. seems that they are in the business of tying up a few key lots and holding them hostage to flip to shell and make a profit with you holding the bag and the risk ..... Lease money is good but the production money is the goal..... look up the Gee well in Middlebury Pa  and the pipeline projects under way. 

Permalink Reply by james on September 8, 2014 at 12:59pm
This offer only amounts to $100 per acre per year? People were signing shallow leases for this much before all of this shale gas was discovered. The 15% is also not very good, the state minimum is 12 1/2%. They will pay a lot more then this IMO. I wouldn't sign a lease for those amounts.
Permalink Reply by Rich on September 8, 2014 at 2:57pm
Robin! Don't listen to gringo landman he is here to make money! The oil and gas co. Aren't going no where!!! Plan an sim
Permalink Reply by Gringo on September 9, 2014 at 3:11pm

Rich,

Your first response of 7000/22.5 shows you have no understanding of the dynamics of Tioga Co. I stand by my statement that you are doing more harm than good with bad advice. I am here to make money as a OGM owner with many leases with multiple companies. I am also here to help other landowners. I deal with swepi on a regular basis and understand how things work here. Is Robins OGM'S worth more YES,will she get more than 1500/15% No. Swepi has been steadfast and has no problem leaving a parcel out of units. I have posted unit maps on this site before showing land owners that were not included in units. When there is no competition from other companies you have 2 options, work with who will develop your prop or get a straw, stick in the ground and suck hard. If Robin would be more specific with location there may be a chance Southwestern is close enough to be a viable option. Although they are offering about the same.

Permalink Reply by Sarah Casper on October 4, 2014 at 6:05am

Could you please post the unit maps again. I missed it. Thank you.

Permalink Reply by Victoria Ayers on September 8, 2014 at 8:42pm

We are being offered $1000/acre in Richmond Twp for a lease that doesn't expire for 13 months.  Is it coincidence that this comes when the Gee/Neal announcement is just a week or so old?

Permalink Reply by James Young on October 10, 2014 at 3:39am

$1,000 an acre.....??  need more info:  for how many years and at what % royalty....??

Permalink Reply by Jack Young on September 9, 2014 at 1:25am

Remember, Morris Township is a long way from the Gee and Neal wells. The further away you get, the lower the odds that you'll get similar results. You can't expect the same offers there that you might get closer to the action.

Permalink Reply by me on September 9, 2014 at 1:30pm

Don't be afraid to ask for what you think it's worth.  The worst they can tell you is no.  Contact other drilling companies.  That offer is extremely low-especially if you have some acreage.  I'd wait if you want to go with that company.  They'll most likely come back with a fairer offer.

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