Guernsey County - Center TWP - Arrowhead Road - Lease and Drilling Status?????

I have some property around Arrowhead road in center township - Guernsey County.  Signed with Shell in 2011 - since then the lease has been transferred to American Energy.

Have a few questions if anybody can help

1. I have heard they are dumping wells in Antrim due to lack of results - does this mean they probably won't drill around Arrowhead?

2. What does this lease transfer mean - a few of the money grubbing oil people have told me that is the worst thing that can happen and American Energy is a joke.

3. What are the chances of them drilling before my lease is up in 2016 - I have heard that they are not finding anything and don't even count on a lease renewal

4.  This guy from TSG keeps asking me to sign papers for a seismic survey - what is you opinion on that BS - so far I have declined

In short - should I even count on royalties or any other money in the next 2-3 years or should I just sell the property and be done with it.  Only reason I'm holding on to it is for this Oil and Gas BS.

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Replies to This Discussion

1. Haven't seen nearly enough data to call that area good or bad yet

2. AEP is a joke in that they've raised $4.2B to start a company and they did so with zero assets.  So by "joke" what people mean is "phenomenal story of success and redemption that underscores the American spirit of never giving up". 

3. Really tough to say.  Again, data drives those decisions. 

4. You're already under lease.  The seismic gives them the chance to see what they're working with before they invest any capex in drilling.  If everyone in let's say a three section area refused to let them do the seismic how likely would it be that the driller is going to show up and just spend $8MM wildcatting?  Seismic is your friend. 

If you count on royalties from undrilled, unpermitted, unplanned wells over the next few years then you're going to be disappointed.  That's not how you make long term financial plans.  How many acres do you have and what is your expectation of a sale price?  Is it worth the risk to you to hold on for another two years or can you do more with that money right now?  It's not an easy answer for most people.  So lay out your options and see which side has more pros, or perhaps fewer cons.  Best of luck to you.

thanks for the advise - rumors fly around - trying to get some clarification.

As for the property  - it's around 50 acres - weighing my options on holding out or selling and investing the money.  I can make a fair amount of cash putting my money in a fund over the next 2-3 years.  This oil and gas may produce nothing and the property value is not going to increase that much.

Lately all I have heard is negative feedback on wells and royalties in Center TWP.  Meanwhile they are drilling the crap out of  Noble while this area sits idle.

Sell it and retain the mineral rights. The wells that have been drilled in Center are not quite as good as the ones east of there.  No way will they drill before 2016. To much better acreage already proven that they have to tie up soon.  About the seismic , most lease have a clause in there that allows them so when push comes to shove you may have to let them.  

I would be interested in buying your property, land and minerals.  I would like some land for camping and hunting.

Big, i have ground in center twp 38 acres with timber and no lease on minerals ...
Definetly keep mineral rights. I too have lease from 2011 and Gulfport specifically wanted center Twp. Think they know its here. Eqt was trying to permit last year...
Don't know why deal fell through... Heard rumor some landowners making excessive demands and most out here are already leased they would have to top lease everyone $$$funny how you already got an offer for land and minerals.....

1. haven't noticed any sales of wells at all in the area.. 

2.American Energy .. of course is Aubrey McClendon,  previous owner of Chesapeake, where on April 10th farm and dairy reported thousands of people who have been screwed by Chesapeake.  should you expect any better from same guy?  and he recently started a new fund asking investors to put in another 2 billion of their own money,  on another company with NO ASSETS... Maybe Dexter lent Aubrey some money on the hopes that he sells that to the Chinese as well?? The joke was on the American people in that case where Aubrey sold over 800,000 acres of United States minerals.. never before happened in American history.. only under this administration can we expect more.. 

3.They need more money.. good luck.. watch the helicopters flying above while Aubrey attempts to gain more investors... 

4. predominately the Seismic guys are companies looking to sell the information.. but agree.. it is essential and everyone should let them get through..

5 every situation is relevant to the asset holder..  valid decisions are made after careful Analysis... and not many lawyers are your buddies..  they have lined their pockets with gold... Your gold..

Hearing rumors of a "DRY" well they drilled on Calico road  - any truth to that.  Neighbors are saying they are not drilling the area because of poor output

What happened to that LaRue well they were supposed to drill?

Heard some things about this but don't want to name names...also there is a bunch of pipeline and various equipment on corn lane off of arrowhead a lot of large trucks going about...


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