William - Do you know who the school district signed with & how many acres they leased? Thanks
I would have to go back and look to see who it was. I don't have it wth me this evening. I have to go back and look for the article.
Isnt the situation that wet gas is now more appealing because of current market prices for the by-products? Other than that, isnt dry gas more desirable due to the fact that it does not take as much processing to ship it in the pipeline?
Im going to agree that this is currently like a game of musical chairs, the music (leasing) is going to stop soon either being market or government dictated, and quite a few people are going to be left standing, not so much permanently, but might be quite a few years until the situation changes. I just cant see these companies dumping such an enormous amount of money to bring 3.00 gas out of the ground. All of these domestic and foriegn interests investing in this acreage are going to want a return, and ill have to believe they are first priority before picking up more leases.
Don't look for the $3 gas to last - look who is buying up all the gas (big oil). They control the oil market and soon with infrastructure and time they will control the gas. Also with time will come for ways for them to steal the gas, oil etc... from you. These bonus numbers are nothing for the $1million/acre of gas thats under your ground. While 3-4k is ok it's by no means great - however a well and it's royalties are- so the sooner you lease the sooner you could get a well or be up for a renewal. I hope they just are fair and honest to most.
Most wet gas areas see a $3 to $4 premium per MCF because of the NGLs. This is a nice bonus when it raises your price from $10/mcf to $13/mcf.
But when the price is $3, you can more than double your income by drilling in wet areas as opposed to dry.
new york will be lifting the ban in 2012 the rush to the utica with the promise of wet gas and the gold rush attitude in ohio is going to curtail pa activity in the dry gas @ sub $4.00 mark. Look @ the futures market for dry gas it is not all gloom and doom
joint venture partners and speculators are going to dictate what happens next
In pa where there is no infrastucture if you signed a lease in dry gas area(and got paid) consider yourself lucky
wet gas area hold on and hope for infrastructure soon
With the shortage of rigs the potential to drill for wet or dry where would you put your assets if you want need a return to shareholders /investors ?
I am sure the large landowner groups will soothe the non signers in southern areas with assurances of wait wait wait it will come
It probably will but till the infrastructure is there it will be awhile. If you can wait good for you.
good luck to us all
drill baby drill
there IS infrastructure occurring in NE PA.
they are actually in a hurry laying/connecting pipelines so they can drill/produce more gas.
this is what "our" gas co. said (WPX) AND they are doing from what i've seen.
as a country we HAVE to use more Nat. gas!
luck to all…
I don't believe the numbers have peaked at all.....I see alot of upside yet!
Royalties outweigh bonus a thousandfold. Can't get royalties til you're drilled ; Can't get drilled til you're leased. Too much emphasis , IMO , on bonus money...Fair addenda and a decent royalty % is where it's at.
Too bad alot of folks can't see past the appetizer to see the huge slab of fillet that's waiting in the kitchen.
Please don't confuse logical thinking with panic. Some of us are perfectly able to think for ourselves.
Glenn, you said you already signed....do you mind my asking what you signed for?
Glenn, thanks for sharing.... alot of people won't share what they signed for. You did good there is nothing wrong with $3000 and 15% and it was a deal that obviously you are happy with.
I can't agree with you more that royalty is by far more important and with it at 18% since Oct with no deductions is good, I believe that it should be and will be at 20% the way it is in Ohio. The utica has been compared to the Eagle Ford Shale and they are paying 25% there.....each percentage point yields a significant amount of money for the landowner over the next 30-50 to who knows how long. My recomendation to our group members and to Mike is to be patient and wait a while....the numbers are not going to go down but there is a lot of potential for increase!
Regarding first signed first drilled? Unfortunately it does not work like that, they will drill in one area and if that is good move over one production unit. If it is not good they will try another area but they don't drill in order of lease signing they drill based on production potential. We have people in our area that have been signed for more than a year and probably won't see a well fro several years....while others will see some this next year.
Your welcome DkinPA. Wasn't long after I signed that the numbers went up , but , yes, I'm happy with what I got.
I hope you are right about the ceiling being yet a little higher. Would be welcome news for all not yet signed!