Lease Offers in Harrison County

Updated November 8, 2011

This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.

As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.

Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in

Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.

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Replies to This Discussion

Permalink Reply by Mark Allen on June 22, 2011 at 11:08am
get to the ECOL or call those who assist landowners, one of the best ways to market,is to know the buyers.know the rocks, know the unitization formats, know more than the seller and know as much as the buyer.
Permalink Reply by scott jackovitch on June 22, 2011 at 12:35pm
I am not holding out .  I have been signed up for several months now. 
Permalink Reply by Paul Martinelli on June 22, 2011 at 11:17am

Scott.....there isn't any money to be made as a landowner unless a well is drilled.

 

I don't care if the Utica in Ohio puts out liguid gold.....the money is in the Royalties ( a producing wll), not in leasing bonus.  Not saying to sign at any cost.....just  think long term.

Permalink Reply by scott jackovitch on June 22, 2011 at 12:44pm

Paul I agree with you .  I signed with CHK several months ago and I am thinking long term.  I  believe there are some folks on this site who's only purpose is to downplay what is going on around us.  Maybe it is just like Doctor Phil says " you just can't get the stupid out of some people ".

Permalink Reply by Dan on June 22, 2011 at 2:41pm
Paul, that's not necessarily true.  If you consider the time value of money, in other words, what a large signing bonus up front is worth now compared to royalties paid out in the future, then the signing bonus is a significant part of the compensation package.
Permalink Reply by Buckeye Fan on June 22, 2011 at 11:20am

Scott,

Does anyone know what the timing is on the Buell Well production? When will we know if it is producing gas or oil?  My biggest question is how can we find out what is actually in play (gas or oil) ?

 

Permalink Reply by Paul Martinelli on June 22, 2011 at 11:31am
It is producing both.  The only Question is how much.
Permalink Reply by scott jackovitch on June 22, 2011 at 12:50pm

Scott ,  I am wondering that myself.  According to the state they are supposed to submit  a production report within so many days of well completion. I was told that they were behind on submitting the report. I guess time will tell. 

Permalink Reply by SA Frank on June 24, 2011 at 7:47am
Can anyone provide valid information on the timing of production results?  The only requirement I see from Ohio is that they must be turned in to the state before March 31 for the preceding year.
Permalink Reply by Marc on June 24, 2011 at 7:21am
I think that's probably right - more eagle ford than marcellus - compositionally anyway.  The business end of this is the recovery and decline rates.  In terms of mineralogy, there's reason to think the Utica will frack good and well.  There are a lot of variables and boxes to check.  But so far, so good.
Permalink Reply by Gary Miller on June 22, 2011 at 1:16pm
Talked to a Gulfport landman today, said they won the bid for MWCD and were looking to sign up the neighboring parcels? No details. Just wondering if anyone else heard anything more, or if it is even true?
Permalink Reply by scott jackovitch on June 22, 2011 at 2:35pm

Gary do you have any contact info for Gulfport ?

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