Replies to This Discussion

Permalink Reply by David Cain on December 13, 2012 at 3:05pm

Mickey,

If the time limit has expired on the Shell lease then you should be able to sign up with any O&G that you choose.  You may have to get a release from Shell if they had filed the lease at the recorder's office.  I am just learning about all this myself, but if your lease with Shell had truly expired, I wouldn't understand why Mr. Kay's company would have bought these leases since they are no longer valid (and would be of little/no value to his company). He may be perfectly legitimate, but I wouldn't limit myself to just one company.  I think you should attempt to gather as much info as you can before you make a decision.  Madison township is close to several of the really good Gulfport wells and the newly announced PDC well, which also has great number, so your land should be highly desirable.  With all the success Gulfport has had, I would attempt to contact them.  I think more O&G companies will be leasing in 2013 when they get their new budgets.  Good Luck!  

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Permalink Reply by Mickey Shank on December 13, 2012 at 3:25pm

This is my brother in laws lease. We had signed with Gulfport with group 5 I believe through the Akron Law Firm KWGD late last year and I am very happy with ours. Last I heard Gulfport is only accepting 20+ acres. Bro in Law only has 5+. His neighbor also has 5+ acres and Shell let the option expire on his also. Thanks for the input, I will relay the info. Unless my B.I.L. is mistaken, this guy states he will DRIVE the lease into Cleveland for my sister to sign over the weekend. That coupled with the part where he states they bought the option rights has raised flags for me. I will tag along tomorrow and see what I can see. So far , no call back from Mr Kay. 

Stay tuned ;)

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Permalink Reply by Mickey Shank on December 13, 2012 at 3:29pm

By the way , where is the PDC well located ? We are by Rts 22 and 285. I'm just nosy ,, 

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Permalink Reply by David Cain on December 13, 2012 at 3:50pm

Mickey,

The PDC well is about 1 mile NE of Lore City.  If you go to mapquest ( http://mapquest.com ) and put in the coordinates of "39.9981889 , -81.4369753 " (without the double quotes) in the "Search For" box it will show you the exact location.  The well has a short 3,900 foot lateral but it produced 1,700+ boe initially, which is comparable to the Groh well on a lateral length analysis.  There is a thread on GMS titled "Range rd. well update" that was started by Bo Boboski on December 11 that has some good info.  And I wouldn't call that being nosy.  It is trying to be informed and that is a very good thing.

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Permalink Reply by Mickey Shank on December 13, 2012 at 3:58pm

I actually saw that one while out taking the scenic route into town a month ago. I had heard a well MIGHT be placed at Rt 22 and Rt 285 but have neither seen nor heard any more about it. Being a city boy ( Cleveland ) this is all new to me.  It's great to see all the farmers and long time land owners get paid. Thanks again.

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Permalink Reply by Oliver Perry on December 14, 2012 at 3:34am

I agree with Scott, something stinks about this scenario and the landman is trying to rush your BIL as well. Shell doesn't have the lease to sell if payment wasn't made to your BIL Tell him don't rush into signing anything without investigating all aspects of this situation. There is some kind of funny business going on here.

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Permalink Reply by Mickey Shank on December 14, 2012 at 11:04am

Went with BIL to meet the guy, he wasn't there . Turns out this is SouthEast Land Company  They claim Holland screwed up and they have taken over representing Swepi LP . The guys we spoke to state that they are working under an agreement with Shell Oil and have had a working relationship for 20+ years with Shell. We got a copy of the contract and will have to take it to an attorney for clarification. The contract seems to be way slanted in favor of Shell but I am nowhere near knowledgeable enough to decipher this crap. 5 year deal with 5 year option. 5K per acre , 20% gross . 120 days to pay but they claim if he gets it in soon, he will receive payment in Jan 2013. (wink,  nod, cough) . 

Knowing that we wanted a legal review of the contract they still asked if we could get it back to them signed by Tuesday at the latest. 

Anyone with info on a local Legal firm knowledgeable in oil lease please send me a PM with their contact info. BIL prefers to keep money in the local economy. Thanks and keep the info flowing !!

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Permalink Reply by Oliver Perry on December 14, 2012 at 1:36pm

Southeast Land Services is a legitimate company that works for SWEPI LP. They signed many many people to leases in Butler County, PA, and have an office in Butler. My experience with them was not good, but there are plenty of others who are satisfied with their services. I heard they moved most of their staff to Ohio to do leasing there. 

I still wouldn't let them rush your BIL into signing, why the big hurry on their part? Find a good oil & gas attorney and have him review the lease. The lease they are offering is extremely in the company's favor and needs many addendums added to be fair to the landowner. I wouldn't worry about the Tuesday deadline, due diligence is a must in these situations, you only get one chance to do it right.

http://www.southeastlandservices.com/

Permalink Reply by Mickey Shank on December 15, 2012 at 4:41pm

Thanks to all for the responses . We have the lease contract and thanks to another GMS member the lease will be looked over soon. 

               Mick

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