We see bickering in Belmont Cnty Oh over the quality of Rice Energy.
Vs spoofing and needing to guess in the dark, here:
Rice Energy is a private relatively new oil and gas producer. Prior they had experience in the Barnett and saw the PA Marcellus coming and have build a modest sized portfolio of producing units. And without size acreage available in the CORE Marcellus swath, they took on a 40k A group in OH. Looks like 1000$B and option to explore drill for ~$5000 more.
A company of this size isn’t going to lay out 6k$ times 40,000A. Even if rock works out, risk is huge- gas prices can stay low for long time etc, etc. They have access and if the results work out, they can develop and use cash-flow along the way to pay more leases and expand, expand. No company today would pay$6K outright.
God deal for landowners and Rice.
Two Rice brothers head the company, they have DEEP industry contacts and can easily attract high talent. The father is a M A J O R, energy investor who holds great sway. He runs a major, major energy fund.
Vs bickering be grateful some in this world get out there and develop their talents to the point their contributions benefit us all.
I am not a lease holder with Rice, but I hear very good things about them from some Rice lease holders I know. Wish they were in my neck of the woods.
Melissa H, "no company would pay $6K outright."
From the grapevine we have already heard that Rice is backed by very large companies who can and do pay this amount.
From the "horses mouth", Eclipse has already paid the Ohio River Landowners Group $5,950/acre.
Rumors that they won't, won't help anyone, except maybe the big O & Gs.
Just a fact.
Who was paid $5,950 an acre by Eclipse? The group in Ohio, Jackson, Lee deal was $4,250 for three years and additional $1,000 for two years if not drilled on or incorporated in pool. Additional leasing at $5,000 and highest I know of was 5 year at $5,250. Interesting where $5,950 was.
This figure came from "only my memory" from the article in the Monroe County Beacon last fall. Therefore, if it was $5,250 for five years, I take back the higher figure. My memory of the article could be wrong and I don't keep the paper. However I will check the archives on the Beacon website if I can find it. Thanks.
Couldn't find it. The highest I found paid that was reported in the Beacon was $5,500 with 20%. Beacon archives are not so great online.
Not sure where you get your information from, but according to other posts on this site, the landowners are getting paid $6,250 per acre.......NOT $1,000 & option to explore for $5,000 later. So RICE IS paying top dollar for a significant number of acres.
Rice Energy leases in 12 of Belmont's 16 townships; range of acerage from one half acre to 364 acres; drilling to begin in fall.