So I have 80+ acres in Monroe county OH which was originally leased with Gulfport which they then transferred over to EdgeMarc. EM let the lease expire this past September and I'm currently in the middle of negotiation of a new lease with them. I'm hesitant re-sign because they no longer will include a vertical or horizontal pugh clause. My concern with not having the horizontal pugh clause is that they can basically include a few acres in a unit and essentially lock up all of the acreage. Looking for insights from anyone with a similar lease issue or dealings with EM.
I would hold out. I haven't heard much about EdgeMarc lately and I believe they only have a small footprint in Ohio right now. If they are in the beginning stages of putting a drilling unit together they may be more likely to offer a pugh clause several months or a year or two from now.
Also lapsed by Gulfport in September and agree it is a bad time to re lease and would not do so in any case without a Pugh clause. Utica has too many DUCs now but that will change.
Yeah at this point might be better to hold off for better terms. Edgemarc isn’t that great.