Guardian Exploration landman in Crawford County

A landman has contacted us about leasing our property near Conneaut Lake.  The offer seems pretty low... at first it was $25/acre 12.5% royalties.  He called a few days later and upped it to $50.  This is for a 5 year lease.  Has anyone else been contacted by Guardian in this area?

Views: 2397

▶ Reply to This

Replies to This Discussion

Permalink Reply by JK on May 18, 2011 at 7:48am

12.5% is the legal lowest they can offer you.  I hope you do not accept this and do some networking and find out what is really going on in your area.  $25 an acre!?  You've got to check other offers folks have received and I assure you it will NOT be $25!

Land men get you to sign as cheap as they can get you then sell it to the real drillers for million$ more!

Get an attorney who knows what they are doing to properly advise you.

Permalink Reply by Dave Siekkinen on May 18, 2011 at 7:52am
I realize this, and we will not sign.  I figured this would be a good place to start networking.  Many of my neighbors already leased with Atlas many years ago, and their wells don't produce much from hat I understand.  I'm glad we still have our mineral rights now.
Permalink Reply by Elnathan Cory on May 18, 2011 at 8:30am
Thanks for the info. We in Mercer County have to be on the lookout. I hope nobody signs for less than $2500/18%.
Permalink Reply by John E. Przepiora on June 1, 2011 at 3:16am
Elnathan, are you a member of a landowner's group?
Permalink Reply by Elnathan Cory on March 15, 2012 at 1:10am

Yes, Mt Jackson 4 through CX Energy.

Permalink Reply by John E. Przepiora on June 1, 2011 at 3:15am

Dave I have been offered $105/acre in Greenwood Township.

 

Permalink Reply by Dave Siekkinen on June 1, 2011 at 3:29am
Thanks for the info John.  I am next to another unleased piece of property, and I talked with him yesterday.  We both agreed that the $50 / 12.5 %  lease offer was not enough for either of us to sign.  Between the 2 of us, we have several hundred acres.  The terms of the lease pretty much allow unlimited resource access, which I don't like either.  We're willing to sit on the acreage and wait for better offers.
Permalink Reply by John E. Przepiora on June 1, 2011 at 4:25am
ask the landman if Guardian actually operates wells or just flips the lease,,,,,,,,,there is time to wait,,,, if you know other landowners, call them, get together and negotiate with knowledge, but know that there is a limit to where they will go, they are paying $1500/acre and 15% in SW PA and SE Ohio. But, that is there, not here,,,,down there the open land is more inviting to development, up here there is a lot of pieces of land surrounded by existing leasehold, which can be drilled and we may be possibly left out. It is a gamble,,,,,,
Permalink Reply by Dave Siekkinen on June 1, 2011 at 4:42am
Landman claims they are committed to drilling, not to flip.  He says they are trying to leverage Atlas to sell their leases to Guardian.  Most of the area here is held by production to Atlas on shallow wells.  I understand the gamble, but would rather lose a little money than sign on to a lease I'll regret forever.
Permalink Reply by John E. Przepiora on June 1, 2011 at 4:53am
guardian does not drill, they flipped leases to PGE in Potter Co, and those wells are operated by PGE. Atlas, just bought out by Chevron, will not relinquish leasehold unless the parent company thinks it is a marketable idea. Guardian may do fill in leasing and develop FOR Atlas as a farmout. (a possibility) This Atlas leasehold is very valuable to to Chevron who just spent a bazillion $ buying control of Atlas, why would they sell it? They won't. They will get some company to develop it. 
Permalink Reply by Craig on June 14, 2011 at 3:18am

Guardian did not flip leases to PGE in Potter County.  Wikimarcellus is wrong, and there seems to be no way to get internet junkies to fix that.

 

PGE flipped to Exxon, Guardian still owns and operates shallow and marcellus wells in Potter county.

 

There is also a multi-leg horizontal being drilled on a pad site in Potter called the Guardian #1, but Triana Energy is the operator.  There was also a horizontal permitted in Potter County by Guardian in 2009 - the record does not show exactly what happened, but it was plugged back - must have lost the hole, therefore Triana in as a partner?

If you look at old records, you will find that early in the Marcellus game Guardian was one of the top 10 Marcellus drillers in PA - now, 3 permitted wells in the Marcellus at that time was top player - now not so much, but were drilling marcellus before many others - apparently not a johnny-come-lately, just small.

 

And yes, I have met some of their landmen, and researched drilling info with DEP.

 

Mr. Seikkinen, the landman you talked with must have been mistaken - I am sure Guardian will not buy out leases from Atlas/Chevron, but since CHevron and Atlas are not coming into the area, who is?  At least to do anything - I have friends in Troy township that have renewed leases with Range for 15 years, and no activity, Atlas drilled a bunch of Medina wells, and now, nothing.  Chevron is not even saying Booh to the area, and without them, nothing happens in your area. 

 

I will bet the landman meant they were going to try and farmout some of the Atlas/Chevron acreaage.  You see, if Chevron is not coming into the area - which they are not, obvioiusly, then typically publicly traded companies will farmout held acreage to smaller companies to let the smaller companies prove or disprove it.  If it proves up, then the publicly traded comany makes money from booking reserves and never spends a dime, but if it does not prove up, then they lose nothing.

 

Hold out, but I doubt real offers will be forthcoming soon, although I hear there has been some others in the are offering 4k when they sell the lease (yeah, that's a good idea for a landowner) what other offers have you seen?

 

By the way, is not the 105/acre a 3 year paid up?

 

Permalink Reply by Samuel Harvey on June 14, 2011 at 9:04am
PGE didn't "flip" to anyone, they sold a non-working intrest to Exxon.  PGE still drills and operates the wells, Exxon only provides some of the capital. 

RSS

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

Badges  |  Report an Issue  |  Terms of Service