Just had a land man approached me in Clay twp Butler County, about leasing. He said Shell is gone and Rex is definitely ready to lease and Clay Twp is a prime spot now. I was told they are offering $2500 per and a 16% royalty if I signed within a 30 day window. And hopefully in 90 days they will start drilling. They want to get started as soon as possible. Also he said that there will be multi units and multi heads here in place in Clay. He works for a company called R.E. Gas Development out of State College, Pa.. The blank lease itself he gave me, looks straight forward, not like the Shell one I had before and didn't sign. OK that is all he said till I go into the office and talk more and Sign?? I dont get on here much, but now there is some movement I will..
If memory serves me, same road as your property, only at the other end off 308.The man said everyone is signing on our road.
That's good news for Clay Township. That seems like a pretty good offer, especially if non-surface. If you have a lot of land you may push their buttons a bit. People talk about "no deductions" leases but I don't think that happens much around here.
RE Gas Development is the name Rex owns the wells under.
Thought they were the same but??? Thanks for clearing that up for me.
RE Gas Development is probably the operating arm of Rex Energy so yes they are the same.
Congratulations on the lease offer! I hope all goes well.
I have a piece of property leased to Rex. Not in a Rex unit yet.
"People talk about "no deductions" leases but I don't think that happens much around here."
That is because the land owners are told you can't get a no deductions lease, so they don't ask for or hold out for it. I think 2500 and 16% is a bit low, maybe 2500 is OK for a 3 year lease, no extension. I also doubt they will drill in 90 days it will take them longer then that to review all the leases and decide if they can/will/should pay you. I'm thinking of a 20% non deductions should be the minimum. Just because a few give away their minerals, doesn't mean we all have to, I would suspect Rex is just trying to tie up more land before Shell gets going with deeper pockets.
Are you north or south of 138? Just curious since Shell has permits for well pads off of Hall road, and on Renicks tree farm...i'm wondering if Rex is poised to buy up Shell's lease holdings??
Wow... who are you working with from REX? My parents own the parcel to your north.
Rex is in the area - 2000/16% non surface and 2500/16% surface both with deductions and 5yr. I believe they will do a 12.5 with no deductions but they are holding strong otherwise. Thinking they may be partnering with Shell or at least drilling the wells for them and or buying up Shells current property? Who knows - time will tell.
I would think REX would be interested in buying Shell's leases, but from what i heard, Shell has been unwilling to move in that direction until they have completed their reorg?? The new guy who took over in January has that company in complete state of flux from what i have read. I know that Edgemarc was looking to buy some of Shell's leases around the Morrow pad, but they were not willing to sell at the time. Who knows what they will end up doing, but right now they seem to be holding up potentially good progress in the area...
I have the same situation with XTO and Shell. XTO is interested in buying my lease from SHELL and SHELL is holding out. I am near the Clouse well in Oakland TWP.
See Jeron Crockett's comments here:
Just last month Rex (R. E. Gas) was offering me 3K/acre, 16% gross, 5yr/5yr lease in Washington Twp. just east of you. This was for a surface lease. He said it would drop to $2500 for a non surface. The properties bordering mine are already leased to 3 different companies, Shell being one of them.