Utica Shale in Ohio

A few of us in southern Richland county Ohio have been approched to sign a lease on our farm land for $15 acre to horizontal drill for oil in the Utica shale. We are wondering if anyone else around the area has been approched also

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Permalink Reply by Daniel Rupert on February 27, 2011 at 10:47pm
AMEN!
Permalink Reply by Chuck Reed on February 28, 2011 at 5:16am
internet forum I'm not sure that it was meant 4. But everyone here is respectively uncredible. Unfortunately no 1 in here can actually truly prove what they have to say. Drilling man news would love to offer sources everything we have unfortunately that means we would have to reveal all our sources. Revealing our sources would ruin our business. Even private person should be forced to reveal their sources in a perfect world. Sport chalet that's just not possible. So I hope everyone will bare in mind this is just a virtual coffee shop.
Permalink Reply by Daniel Rupert on February 27, 2011 at 9:23pm

The GOOD LORD gave us a mind to use. I may or may not know more than you...that's not the point. The day of 15$/ACRE is gone! That is highway robbery and anybody that knows anything about natural gas leases in this year,2011, knows that! I have friends that signed for 15$/ACRE and 50$/ACRE...breaks my heart...I'am Christian...most people who are compassionate are Christians. I just want to mention that my first experience with a landman...he boasted about his 45 years of experience and how I needed to accept his offer or miss out...he was very wrong...15$/ACRE was a joke then[2008] and is even a bigger joke now!

Permalink Reply by John H on February 27, 2011 at 9:56pm

I will not give you the dignity of responding anymore but...how dare you accuse me of hurting anyone!  You don't know a single thing about me.  Of course, that doesn't keep you from judgemental comments and personal attacks.  And just what did you give me the benefit of the doubt about?  I didn't ask for your approval or even your opinion of me.  Keep you comments to the subject, not as to the participants.  This site is not about me, but I am entitled to my opinion, whether it coincides with yours or not.  This site does not exists for your own personal benefit.  It is intended to let people exchange ideas and opinions.....whether they agree with yours or not.  Start your own site if you want exclusivity as to what is right or wrong.  And keep praying.  I can tell it's working out great for you so far.

End of discussion on my part.  Best wishes

Permalink Reply by brinlady on February 28, 2011 at 11:27am

@the OP:

 

Have you checked with the Ohio Geological Survey to see what information they have on the Utica? 

 

And with the Ohio DEP or whatever agency regulates gas drilling in Ohio to see what Utica wells have been drilled and whether or not the Hill company is a driller or a lease buyer? 

 

Also with the Ohio Dept of State for more info on the Hill company?

 

This results from these inquiries can help you build a personal "data base" that you can use to aid you in decision making.

 

Mr. Howard has given you a great deal of good advice but it is a little on the conservative side financially in light of the speed of gas/oil discovery we've been seeing in the last four or five years.

 

The amount of shale gas and oil discovered (and mostly unproven) in the past few years is mind-bogling.  E&P companies like to squirrel away nuts for winter, however, and while wells bring in more money than signing bonuses, that well could be drilled 40 years from now!

 

Finding a GOOD mineral attorney also is important, as other have mentioned.

 

Good luck with your venture.

 

Brinlady

Permalink Reply by Daniel Rupert on February 28, 2011 at 1:08pm
 Eric, I meant to reply to your inquiry and was sucked into a debate that was silly @ best. The guy that offered you 15$ is not a guy you want to do business with. We went through this garbage in Pa. back in 2008. Don't take it personally, but some of these landmen and company representatives will give you 5$ if you accept...they are out to make a profit @ your expense. My family, our Partner and our attorney had to sift through a lot of information and endure many low offers...take your time.Our first offer was 15$/ACRE, then it progressed as follows15-50-100-150-250-500-1000-1500-2000-2250-2500-2750. The royalties started @ the minimum allowed by law @12.5%, then 15%, then 16%. I have 30 years experience in the large Commercial P&C Insurance Industry...I learned to underwrite risk right out of graduate school. That's what you need to do in your neck of the woods. First,educate yourself about neighbors offers, the companies looking for leases in your area,permits. infrastructures in place, geological surveys,DEP. Then get a solid Mineral attorney for solid legal advice,,,money well spent. I had lunch with reps from EQT,Range Resources and Cheasapeake...shared my story and they laughed at me becuase they said that is the norm on all new shale plays...don't take it personally but be in a position of power[knowledge is power]...then you can laugh @5 and 10 dollar offers very easily...heck, I would not even pick up the pen for 15$ an acre! Best of luck my friend and GOD BLESS!
Permalink Reply by craig on February 28, 2011 at 2:46pm
Daniel, well said. The only defense I can give for the low pricing at the beginning.....in our area of western Pa most of us signed up 5-7 years ago at the $15 or so. I don't begrudge anyone of the low price because back then the shale plays were unkown here. They were gambling that there was something here. Once things heat up the price goes up just as you state.
Permalink Reply by Daniel Rupert on February 28, 2011 at 2:53pm
I agree craig...5-7 years ago they did not know...3 years ago they had a much better idea...I wish you the best of luck!
Permalink Reply by Chuck Reed on March 1, 2011 at 12:50pm

Farmers were used to the land men comeing around ever few years.  But the thump trucks and choppers in the sky should have tipped some folks off. 

The Utica is larger than the current shale. Also, new rigs are come'n into the area and they are far larger than the ones we have had here in the past.  This leads me to think that the Utica shale will be drilled from pads that are now in place and wells that are not producing $

Permalink Reply by dr j on March 1, 2011 at 1:46pm

Hi Eric,

 

Lots of good information on this site and elsewhere on the 'net.   Google is your friend!   I think if you spend a little time reading everything you can get your hands on, you will get a good general "feel" for the current climate.

 

A couple of points - "Marcellus" has become the press' "garbage can" term for all current gas exploration although the current Ohio interest is primarily Utica, you will still see it referred to as Marcellus shale most of the time by the routine media outlets.

 

There is a large interest in the Utica and permits/wells are happening now.  The main interest currently is two eastern Ohio counties.  I am willing to bet the person approaching you is certainly a "flipper" -  he is gambling somewhat that the utica play will continue into your part of the state.  It certainly may.... and it may not. 

 

Your situation is much like that of Columiana/Carroll counties about 18 months- 2 years ago.  Some very large landowners leased for $8/acre.   Current leases are exponentially better than that.   Do some research- educate yourself and take your time. 

Permalink Reply by Chuck Reed on March 1, 2011 at 3:11pm
this is why i say use/learn the industry.  Google and other data hunts can be faster and better if you use the right jargun and not what the AP writters say. 
Permalink Reply by Hunter on March 3, 2011 at 4:31pm
WHat two ohio counties have the most interest. thanks hunter

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