Eclipse-Oxford leases and extensions in Guernsey County

I am a landowner in Guernsey County with a 4 1/2 year old Oxford lease that is set to expire in about 6 months.  I, and apparently many others, have just received an offer from Eclipse to extend the lease for 3 years for a generous one time payment of $100.00 and the same 12 1/2%  royalty (but no line charges).  The extension provides for the grouping of 640 acres instead of the 160 acres in the old leases.  I had hoped that Eclipse would treat the landowners fairly, in contrast to the Oxford way, but apparently not.  The landman, who called me, reminded (threatened?) me that Oxford (now Eclipse) is still drilling its shallow wells to hold them by production.  According to the DNR records almost all of these shallow wells have only the tiniest of production of oil or gas or sometimes only salt water or nothing.  My neighbors tell me that Oxford comes in, sets up a small rig and drills for a few days and leaves.

 

One leverage the landowners have by not signing the extension is to deny Eclipse the right to put together the necessary 640 acres to drill a deep well.  If enough people do not sign the extension maybe we could get a realistic offer. 

 

Has anyone on here received a similar extension "offer"?  Is anyone actually signing these things?  Does anyone know of any law suits or other methods to stop this bad faith drilling of the shallow wells?  

Views: 26787

▶ Reply to This

Replies to This Discussion

Permalink Reply by David Cain on August 2, 2013 at 6:42am

It could mean that if they don't drill a horizontal Utica well before the lease expires.

Permalink Reply by Dodge Charger on August 2, 2013 at 11:09am

Ah, thank you David; I hadn't considered this.  I guess I am showing my ignorance of the players ;-)

Permalink Reply by Rob Rotz on August 5, 2013 at 4:50am

Charger,  David is correct,  eclipes ment if they dont drill horizontal on me before the lease expires, then they would release me, or try.

Permalink Reply by Philip Brutz on August 5, 2013 at 6:00am

I hope so.  I have been an island surrounded by Rex and Oxford.

Permalink Reply by David Cain on August 5, 2013 at 12:22pm

I am an absentee landowner and was down in Millwood a couple of weeks ago to check on things.  I was stunned by the amount of gas lines going in.  If Rex's J. Anderson well is on par with the wells they drilled on Whiskey Ridge then I think things will really start to heat up for us.  I don't think it will matter too much if you are leased with Rex, Oxford/Eclipse, Chesapeake or some flipper, the E&Ps will start trading to put together their units.  It may take years, and something unforeseen could stop this in its tracks, but it is an exciting time to be a landowner in SE Guernsey.

Permalink Reply by evan on August 5, 2013 at 12:32pm

I agree david. Chesapeake is getting to drill in oxford then one in millwood soon after. This will be there first wells in this area.  Hope their great

Permalink Reply by David Cain on August 9, 2013 at 6:35am

Rick,

 

I think the Rex wells in Beaver township have demonstrated that this area is strong.  Hopefully, the J. Anderson wells (even though a little further north) will reaffirm this.

Permalink Reply by evan on August 10, 2013 at 8:31am

J anderson wells all went northwest . All 5 of them. the rig is now in pennsylvania so for now none of them is going south 

Permalink Reply by Trekker on September 25, 2013 at 10:32am
I have just received an offer of a Top Lease for a significant amount of money from Great River Energy LLC from Canton, Ohio. The man that I talked to said that the company had never drilled a deep well but that it was well financed and headed by the former CEO of Chesapeake.

Has anybody reading this know anything about the company or has signed any leases with it?

Trekker
Permalink Reply by evan on September 25, 2013 at 12:27pm

Stay away if it has or had anything to do with Chesapeake.. I know it's his new company but it ll be bad news

Permalink Reply by Paul Martinelli on September 27, 2013 at 6:04am

Can you give more information on this new law?  I assume you are talking about releasing land that is HBP  by unproductive shallow wells.

Permalink Reply by Robin Hood on September 26, 2013 at 11:41am

Great River Energy is run by the Ex CEO of Chesapeake, Aubrey McClinton.  He has all the dirty tricks when it comes to leases. Beware. Be Very Scared!

RSS

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

Badges  |  Report an Issue  |  Terms of Service