Leasing negotiation ends due to pricing issues.

Just had a lease negotiation end due to pricing issues.  Anyone else? 

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Permalink Reply by David Rontal on January 5, 2015 at 1:58pm

Care to share where and with what operator?

Permalink Reply by Dan Warner on January 6, 2015 at 5:06am

Ditto.

Permalink Reply by Warner on January 16, 2015 at 8:01am

Haggard Land Company

521 W. Wilshire, Suite 130

Oklahoma City, OK  73116

Negotiating for AEU

Permalink Reply by Dan Warner on January 5, 2015 at 6:17pm

Hello, Warner; this is Warner.

It's not official, but a landman had been soliciting my mother for a small fractional interest in some minerals in Tyler Co., WV.  She is elderly and in poor health, so she referred him to me, and he said he would contact me immediately, but so far, nothing. This was a couple of weeks before Xmas.  Taking the holidays into account, I expected to hear something this week, but nothing yet.  Prior to this, he had been hounding her for months.  

The landman works for Lonetree, and is leasing for Antero.

Permalink Reply by john on January 6, 2015 at 4:09am

Antero let go nearly 350 people yesterday... out of the Bridgeport office...  I wouldn't expect a call..

Permalink Reply by pinehill on January 6, 2015 at 4:44am

We had the same thing happen to us in early December with AEU. They cut staff at the end of the year,  I saw yesterday where the combined their Utica and Marcellus divisions into one. No statement on how many they actually let go but our landman was one of them.

Permalink Reply by Dan Warner on January 6, 2015 at 5:04am

I figured, but I don't quite get why he was calling almost to the bitter end.  It seems like they would have backed off as soon as they knew of the budget cuts.  

It was a low-ball offer, so maybe they're still interested in a bargain.  

Permalink Reply by Janice L. Hancharick on January 6, 2015 at 5:33pm

In PA company offers are being rescinded, and it doesn't sound like true offers in WV are even reaching the discussion stage let alone the lease stage.  Until the O&G downturn settles, considering anything coming to fruition soon may be a dream. Companies are letting many steady workers go off payroll.  Looks like land agents (commission bound) are no different.  Not such a great time unless a pittance is all one wants.

Permalink Reply by Nancy LeNau on January 10, 2015 at 3:21pm

I just talked to a friend of mine in Burgettstown, PA. Range   offered her $2,000.00 and 17 %.  He also told her Range will be pulling out and won't be back until 2018.  NOT.... so good news.   My other friend just had her well plugged by Range in a nearby town.  So sad.

Permalink Reply by joseph spano on January 20, 2015 at 4:58am

hey nancy,out of curiosity,which "nearby town" are you referring to from your "other friend"?....im just tryin to connect the dots!

Permalink Reply by D L T on January 9, 2015 at 9:14am

The number of people was 250 in the Associated Press, so as the story goes the numbers change.  Kinda' of like Antero does when they negotiate. If you read, these people were not Antero employees but, contractors, as in land agents.  Antero farms almost all their work out so I would read between the lines and closely when it comes to them.... Why would Antero let anything out pertinent to their operations?  When you try to get any info from these companies it's top secret stuff.  Do you suppose they will come back in a few months with 200 an acre offers,  then tell you, "you should have took 3000 when we offered" ??? There are several ways to take this "news" and I have some thoughts but, I remain on the sidelines. 

Permalink Reply by Nancy Mosley on January 9, 2015 at 3:49pm

D L T, what you say makes sense to me. It sounds like a business decision. I think they had been busy enough getting the easy leases that they have enough for awhile. But if we remember just a few months ago, it looked like they had lots of big plans for the area. If a location looked promising then, in the geology sense, then I expect it still is promising. Their current budget shrank, and land acquisition is expensive. They'll be back. And in some cases, where they are actively drilling, they'll keep trying to get leases lined up. The prices went down in a hurry, at least the oil prices, and can go up again just as quickly if things change in a variety of possible ways.

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