Pa. bids for shale-gas land lower than elsewhere - GoMarcellusShale.com2024-03-29T04:53:16Zhttps://gomarcellusshale.com/forum/topics/pa-bids-for-shalegas-land?commentId=2274639%3AComment%3A24391&feed=yes&xn_auth=nofile seems corrupted... can't…tag:gomarcellusshale.com,2010-04-15:2274639:Comment:274432010-04-15T06:41:26.230ZJean Michel LeTennierhttps://gomarcellusshale.com/profile/JeanMichelLeTennier
file seems corrupted... can't download. it..
file seems corrupted... can't download. it.. agreed...tag:gomarcellusshale.com,2010-04-09:2274639:Comment:269772010-04-09T18:47:58.732ZJean Michel LeTennierhttps://gomarcellusshale.com/profile/JeanMichelLeTennier
agreed...
agreed... Just to put thing in perspect…tag:gomarcellusshale.com,2010-04-09:2274639:Comment:269692010-04-09T18:32:46.115ZCPGhttps://gomarcellusshale.com/profile/ChuckGenell
Just to put thing in perspective for everyone.<br />
<br />
Two deals just went through....here are the details:<br />
<br />
Anadrako sells lease on 100,000 Marcellus acres to Mitsui & Co for $14,000 per acre ( Feb 2010)<br />
<br />
Atlas sells sells lease on 300,000 Marcellus acres to Reliance Industries for $14,167 per acre ( April 9, 2010)<br />
<br />
If you do a google news search for these companies you can read the full articles.<br />
<br />
This is the kind of money and more..that they are willing to pay....!!!!<br />
<br />
Private landowners will…
Just to put thing in perspective for everyone.<br />
<br />
Two deals just went through....here are the details:<br />
<br />
Anadrako sells lease on 100,000 Marcellus acres to Mitsui & Co for $14,000 per acre ( Feb 2010)<br />
<br />
Atlas sells sells lease on 300,000 Marcellus acres to Reliance Industries for $14,167 per acre ( April 9, 2010)<br />
<br />
If you do a google news search for these companies you can read the full articles.<br />
<br />
This is the kind of money and more..that they are willing to pay....!!!!<br />
<br />
Private landowners will be getting between 11-12 thousand dollars per acre minimum by Aug 2011. "Reasonable" is what the Mark…tag:gomarcellusshale.com,2010-04-03:2274639:Comment:263862010-04-03T16:17:49.997ZJean Michel LeTennierhttps://gomarcellusshale.com/profile/JeanMichelLeTennier
"Reasonable" is what the Market wil Bare and that is changing every day as new player come into the area...
"Reasonable" is what the Market wil Bare and that is changing every day as new player come into the area... Mike-i can sympathise with th…tag:gomarcellusshale.com,2010-04-03:2274639:Comment:263722010-04-03T12:20:52.158Zgeorge namiehttps://gomarcellusshale.com/profile/georgenamie
Mike-i can sympathise with the smaller companies,but Chesapeake is still trying to screw landowners.They are buying,or trying to buy , properties at less than 1K/acre from uneducated landowners,and they have to be doing it so they can "flip" the land to the smaller cos. at a considerable profit.There aren't enough rigs or crews on the planet to drill the land they already have under lease.Seismic has already been done in my area,so risk has been reduced-at least to a degree.I am not trying to…
Mike-i can sympathise with the smaller companies,but Chesapeake is still trying to screw landowners.They are buying,or trying to buy , properties at less than 1K/acre from uneducated landowners,and they have to be doing it so they can "flip" the land to the smaller cos. at a considerable profit.There aren't enough rigs or crews on the planet to drill the land they already have under lease.Seismic has already been done in my area,so risk has been reduced-at least to a degree.I am not trying to condemn the entire industry,but when an offer of $850/acre(this offer came with a "take it or leave it",and,"if you dont sign we will drill under you anyway") is made to my female friend,and within 3 minutes of idle chitchat with me the price went to 2500/acre(and this is before ANY haggling)something's wrong.Maybe its just my nature,but I'd have a hell of a time trusting these very same people to accurately and honestly monitor and distribute my royalty money down the road.Also these contracts basically give your land to the drilling cos.-there are provisions that allow them to do anything they want(drill on-site,dig holding ponds,run underground or above ground pipes,and just about anything they like-for eternity-if they kick up 850-2500 again if they need you after 5 years.If you think I'm saying anything just to be inflammatory,I would be happy to send you a copy of the contracts.Mike, we both know that the bigger cos. are not paying out this money without knowing the risk factors exactly ,and that they are going to make a hefty profit(which they are entitled to if landowners are properly compensated).After all ,If they were running around indiscriminately handing out money, they wouldn't be in business for long.I've been involved in various very risky venture businesses for almost 30 years,and while I'm not the size of Chesapeake,I've always known every contingency and detail BEFORE a dollar came out of my personal or my investors pockets,and there's nothing anyone is going to tell me that would make me believe that big drillers/leasers dont do the same.Again,I'm not trying to be down on you,but the sleazy tactics I described earlier is making everyone and everything about this play worthy of suspicion IMO.Perhaps a contract like you described earlier would be more in order,something that allows the smaller guys to play with the big boys,but also protects the landowner Let's see what Chesapeake's C…tag:gomarcellusshale.com,2010-03-26:2274639:Comment:256312010-03-26T06:34:31.934Zjustin clousehttps://gomarcellusshale.com/profile/justinclouse
Let's see what Chesapeake's CEO Aubrey McClendon thinks..."the Marcellus is twice as Profitable as the Barnett and Fayetteville Shale and 50% more economical as the Haynesville." HE seems pretty smart being a CEO of the 2nd largest gas producer in the US and all... Refer to page 10 of the attached Oil and Gas Investor PDF file
Let's see what Chesapeake's CEO Aubrey McClendon thinks..."the Marcellus is twice as Profitable as the Barnett and Fayetteville Shale and 50% more economical as the Haynesville." HE seems pretty smart being a CEO of the 2nd largest gas producer in the US and all... Refer to page 10 of the attached Oil and Gas Investor PDF file I really mean that ;-)tag:gomarcellusshale.com,2010-03-26:2274639:Comment:256292010-03-26T06:30:30.401ZJean Michel LeTennierhttps://gomarcellusshale.com/profile/JeanMichelLeTennier
I really mean that ;-)
I really mean that ;-) thank you so much...tag:gomarcellusshale.com,2010-03-26:2274639:Comment:256282010-03-26T06:28:47.594ZJean Michel LeTennierhttps://gomarcellusshale.com/profile/JeanMichelLeTennier
thank you so much...
thank you so much... Its all about location... If…tag:gomarcellusshale.com,2010-03-26:2274639:Comment:256262010-03-26T06:17:58.281Zjustin clousehttps://gomarcellusshale.com/profile/justinclouse
Its all about location... If you have the production numbers to match on the land next door it drives lease values up.... Some #'s to think about Chesapeake upped the Ultimately Recoverable Gas to 4.25 BCFE per well in the Marcellus recently. 4,250,000,000 cf/1000 X $5.00gas/mcf= $21,250,000 per well with approximately 50% of that coming in the first 2 years. If the well cost $4,000,000 to drill and the well covers 80 acres( 1000ft well spacing and 2,500 ft laterals)…
Its all about location... If you have the production numbers to match on the land next door it drives lease values up.... Some #'s to think about Chesapeake upped the Ultimately Recoverable Gas to 4.25 BCFE per well in the Marcellus recently. 4,250,000,000 cf/1000 X $5.00gas/mcf= $21,250,000 per well with approximately 50% of that coming in the first 2 years. If the well cost $4,000,000 to drill and the well covers 80 acres( 1000ft well spacing and 2,500 ft laterals) $21,250,000-$4,000,000=$17,250,000 divided by 80 acres = $215,625 per acre with 50% coming in the 1st two years of the decline curve.... I could settle this problem fairly right now..... No bonus money up front with a 50% Royalty that doesn't kick in until well cost are recovered..... Minimal risk for Gas Producers.... Everyone is Happy!!! That is Why they call it BIGGG OIL not little OIL... Oh yeah, they are also drilling on 3-4 separate Horizons out Here in Bradford and Susquehanna Counties with the Upper Marcellus, The Purcell Limestone, The Lower Marcellus, And the Trenton Black River Shale....So they can drill 3-4 more horizontals on the same 80 acres..... Look before you lease, and If nothing sounds good....wait wait and wait some more Exxon, does not invest 41 Bil…tag:gomarcellusshale.com,2010-03-13:2274639:Comment:244352010-03-13T03:25:31.267ZJean Michel LeTennierhttps://gomarcellusshale.com/profile/JeanMichelLeTennier
Exxon, does not invest 41 Billion dollars with out a very good reason, and Mitsui just paid 14,000 an acre in the fairway as well as chesapeake has paid up to 30,000 and acre on some properties...<br />
this I know for a fact...<br />
The NY area has at least several layers of shale, giving the gas company's access to over 3000 feet of drillable shale and northern PA, has over 1000 feet of UTICA, and the first few production test wells in th utica are producing at a rate of over 6 mcf/d and more<br />
4000 an…
Exxon, does not invest 41 Billion dollars with out a very good reason, and Mitsui just paid 14,000 an acre in the fairway as well as chesapeake has paid up to 30,000 and acre on some properties...<br />
this I know for a fact...<br />
The NY area has at least several layers of shale, giving the gas company's access to over 3000 feet of drillable shale and northern PA, has over 1000 feet of UTICA, and the first few production test wells in th utica are producing at a rate of over 6 mcf/d and more<br />
4000 an acre is cheap , very cheap for this area<br />
sorry