LEASING ON THE EDGE OF THE " CORE PRODUCTIVE AREA".

My land is right on the edge of the " core productive area". With the new ODNR maps effectively reducing the amount of productive shale to lease does that make productive areas MORE rare and therefore, more able to demand a high lease bonus and royalty? 

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Permalink Reply by David Perotto on March 31, 2012 at 3:03am
Pilsner,
This is uncharted waters, but logic says yes to your question. You should be able to command a higher price. In my opinion, go for the highest royalty % that you can get. If your area is truly productive, that is where you could reap a huge amount of dollars. Good luck to you.
Dave
Permalink Reply by David Perotto on March 31, 2012 at 8:12am

Damn auto-correct, didnt mean to call you Pilsner, Oildude.

Permalink Reply by Erik V. on March 31, 2012 at 7:58am

A lot would depend on what kind of gas is in the area where you are if you want to lease right away.  If it's wet gas then you have a good shot of getting a lease sooner than later but if it's dry gas you may have to wait a while.  Usually areas on the edge are the more marginal, but with the limited number of wells around those maps may change greatly when more are drilled.  The last thing I would do is panic and sell cheap.  Good luck!

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