Small company or Big company..who's more likely to actually put up a well?

 Ok so there are big companies knocking and small ones too.  i am curious to see what everyones experience has been so far.  I at first didnt want to deal with a smaller company but after doing a ton of digging and reading, I came to a different conculsion.  Big companies have millions of acres, somuch they can possible put a well on ever unit for years. Smaller companies hopefully have more of a motive to get a drill up to get back their investment and make some money.  Tell me your experience?  And regrets?

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lynn that a good ? in the northeast cabots been doing most of the drilling there are others drilling how has contracts with the pipe line in the area cabot has a agreement to suppy up 100 million cf a day with tennasee pipe line thaat might be something to look into also and do think your right the smaller co want to make there money back faster so they can drill more well. just my take on it

Lynn,

 

Glad so see you're coming around to the advantages of being a big fish in a small pond, rather than the opposite.  As with every situation in the Marcellus, there are soooo many variables and such a determination would really have to be on a case by case basis.  In many situations you're better with a bigger company, but there are other situations where a motivated and well funded smaller company could get you a much better deal.   You will find some companies (such as the one we work with) that only lease what they intend to drill, and they do so on very short terms to avoid having to pay big land rental payments.  

I know right!  Still beleive in getting pretty good $$ but making sure more importantly then super huge upfront..drill baby drill words are in the lease..thats what i want, and I think the bigger companies have so many acres, they made their plans of where and when to drill...YEARS before I came into the picture, so they are not going to change those plans because I want a well....so I learned when signing SIZE DOSENT MATTER.....hahahahahaha... by that I mean a bigger company, isnt always a better deal for the long term.....your just one of many.... not that they dont want to drill, its just more of a question of when? and will I still be alive..haha
The bottom line for me is the lease. All of the companies trade with each other. First the language in the general language in the lease is most important, then the royalty, third the bonus money.  So many seem to get this in the wrong order.  Three words of recommendation:  1) Talk to neighbors, especially big acreage ones; 2) Ask them for a recommendation on an attorney and who they leased to; 3) for many reasons, if all other factors are close to equal, lease with who your neighbors did.  Finally, if I have the choice of a big bonus check or 15% royalty, I will take no bonus and 20% royalty.  There are many reasons including taxes but bottom line I want the money long term.  Ok, I am a landman that doesn't work anymore and roasting in Florida.  Good luck and take this for what it's worth.
Small companies can do the test well drilling themselves, and flip the lease with bargaining strength if it's a "good" test site.  Flipping the leases to the big boys allows for a handsome profit for the small driller, and a continued income if a clause is incl. that sets them up for monitoring and servicing the well once it's in production.  This is a long range plan that serves both parties in a positive way.  Where does it leave the rights owner?    Same position he started in, unless the original lease is very special.  A thought ...
WORD!

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