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
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Permalink Reply by Al Cramblett on
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Comment by James Milleson 1 day ago Folks my office is full of clients who have been offered the moon and back. The drillers have the financing not the marketing brokers. I for one would love to guarantee a dollar figure, a higher royalty payment and a promise to you that you are doing the right thing. BUT I, NOR CAN ANYONE predict the future. What is real is real. Currently our clients total 13,820acres and we have not signed. We have offers from marketing agents as high as 1800.00 per acre and 18% royalities-and I have asked each of those marketing agents to WRITE the check. The answer is always the same, they can't//why not , because they have no money! We signed a few at $765.00, $500.00 and $900.00 and payment has been issued. I am still skeptical on the ceiling and I am willing to wait as the drilling information out of PA-and W.VA. can be analyzed. Facts are facts, and I want proof. If you have received a check for more than $1400.00 per acre in EASTERN OHIO I want to hear from you.
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Permalink Reply by Frank Moll on
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As I mentioned I have 140 acres total in Harrison around Cadiz with 109 of that under lease with small drilling co. I am working on buying out the 109 acre lease due to them not planning on drilling but in the mean time I would like to at least work on leasing the remaining 31 acres if anyone would lease that small amount. If I cant get out of my current lease I will have to wait 3 years, does any one have an opinion if everything will fizzle out by then? I could offer them a larger chunk of money to get out of current lease if it makes sense. Just looking for opinion
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Permalink Reply by Al Cramblett on
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.At 8:42pm on September 30, 2010, Two Dogs said… Al, these shale plays are going to go on for a hundred years or more, long after all of us on this website are long gone. I just want all the folks to relize that when they sign the lease it will effect their great great great grandchildren.
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Permalink Reply by Stan Glover on
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I have read with interest the information below but was wondering if anyone has anything new to report, since October, as regards Harrison County. We are in Bowerston and have yet to sign but have been approached by Kenyen. We have heard about "pooling" but the information seems a little bit light. Any commens or direction would be appreciated. We have 167 acres that we are considering. Thanks
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Permalink Reply by Al Cramblett on
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Rumors indicate that the cash signing bonus is now at or above $2000 an acre with the royalty amount being 15%. The landowners that are going together are getting the best offers.
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Permalink Reply by Stan Glover on
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Heaston Road
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Permalink Reply by James Harber on
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Kenyon aka chk for most leases has bumped their bonus per acre tp $1,500. plus 15% royalty on a 5 yr Paid-Up, O & G Lease.That is providing there is 5 acres or in a specific area they desire now,Archer Twp and Rumley Twp seem to be their primary target areas, then North Twp and Stock Twp. They are setting 2 new well pads - Archer Twp just Sputh of Jewett, one on the Sportsmans Club off Briar Rd and the other one South of Briar Rd on Hanover Ridge Rd, near Bell Rd. The pad on Hanover Ridge Rd is almost complete, with drilling to start the first next month. These are test wells for chk and will possibly determine the areas they will drill first in Harrison County.
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Permalink Reply by 1s7k1qp9wk1t7 on
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How close is the Archer Township pad to the old George Couch farm?
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There is a Campbell farm nearby, the best way to describe the location is go South of jewett on Briar Rd to Hanover Ridge turn right and go past the old steam shovel on the left side of the road, the entrance to the pad site is on the left about a half mile past the shovel. You can't miss it, the road is white rock and sticks out like a sore thumb. the pad is on top of the ridge about a quarter mile up the road. I expect the rig to start work by mid-Dec.
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Permalink Reply by Buckeye Fan on
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What are the major differences between Wellington Resource Group and Kenyon / Chesapeake Energy? If these test wells are positive for Kenyon, what will it mean for those who have not signed yet?
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Kenyon and Chesapeake are one in the same, no difference. Wellington is just a broker trying to lease your interest then sell it to Chesapeake for more money within the 120 day period, of which goes in their pocket and not yours. The primary problem with leasing with a 120 day pay out of your bonus per acre money is that Chesapeake may move in a different direction once they complete a few test wells and never get back to the area your property is located in, then the broker is not able to market the leased interest and they just default on their lease agreeemnt with you.
I realized that these are alot of "What if's", but I suggest you go with a major company suchy as Kenyon/Chesapeake or even Range Resources who is a major player in PA, WV and now coming into OH. The more companies coming into the area will drive the leasing price up, once the test wells are completed. Remember, the Utica Shale is considered to be oil and gas, and with the prce of oil at $89.00 a barrell and gas at nearly $5.00, everything is going up. I liked one comment that I heard in the comments, this will effect generations of your family. The bonus price per acre is important, but the key is the royalty interest 15%-20% for the long haul. The other key thing you need to consider is the addendum's that you have added into the lease, such as Market Enhancement clause which gives you the gross, not net and the Water Damage clause which protects you should there ever be any problems with your water. There are several others that you should know about depending on whether you have 1 acre or 100+ acres. -
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