Venango County! WIll it ever see 3000.00/acre?

Does anyone think we will get the offers other counties are getting? 

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Permalink Reply by Dave on October 4, 2011 at 9:51am

With all the land guys (aggregators) lawyers and such - MDS group Snyders group  knapp s group......

The forcast is what?. I am wore out from (the word on the street) rumors and such. I actually now howl when I hear word on the street- from a guy who knows a guy whose cousins wife is a waitress and heard it from the diner. 

I actually had a lease in my hand from Keefer mtn started @$ 1800 acre then went quickly to $1500 acre due to giving the lawyer 200 an acre then 100 an acre to the landman and I had 48 hours to sign no adenddums,They are still shopping that one. Mt Chesnut group$ 2000 acre all with the normal boiler plate hurry up and sign.

My property is one piece away from Marion twp Butler co. Shell told me they will get back to me. That was 90 days ago.

 

I think someone will come thru @ 2500----hopefully more

sorry for the rant..........

Permalink Reply by Terry W. on October 4, 2011 at 1:23pm

Just signed with Shell a couple of weeks ago, Venango Township.

They have one price, $3,000 acre plus 15% without deductions, 5+5

There are a couple assigned to Marion Township representing Shell.

There is an office in Butler, and Shell has advertisements to call them

at that office.  They are located at 115 W Cunningham 724-256-9259.

Good Luck

Permalink Reply by George Brown on October 4, 2011 at 1:35pm
Terry, I received an offer from a Shell landman also for $3000/acre (Venango County, Irwin Township) but the royalty is 15% net, not gross.  Sounds like you got the gross royalty.  Did you have to negotiate that or was it part of their initial offer?
Permalink Reply by Terry W. on October 4, 2011 at 2:08pm

George:

Addendum reads:

Royalties without deduction:  Royalties shall be paid without deductions for the costs of producing, gathering, storing, separating, treating, dehydrating, compressing, transporting, or otherwise making the oil and/or gas producted from the lease premises ready for sale or use.  All oil and/or gas royalty shall be delivered free of cost into the tank or pipeline (for oil) and into the pipeline (for gas), with the exception of Lessor's prorated share of taxes, measured by volume, on the oil and/or gas royalty.

Witout deductions is the same as 'net'

Permalink Reply by George Brown on October 4, 2011 at 2:38pm

OK, mine didn't include such an addendum.  Here is how it reads regarding royalties:

(4) ROYALTY PAYMENT – On oil and gas, along with all hydrocarbon and non-hydrocarbon substances produced in association therewith, (except storage gas) Lessee shall deliver to Lessor, as royalty fifteen percent (15%) of the proceeds (less all applicable excise taxes, including production, severance and windfall profits taxes, and less transportation, compression, dehydration and gathering costs, if any) realized by Lessee for that produced and marketed off the leased premises.

Permalink Reply by Terry W. on October 5, 2011 at 3:22am

George:

I believe that is the boiler plate

As you can see, 15% of the Proceeds  LESS eveything....which amounts to 2%-3%

less of the 15%, making your royalty 12%-13%......

 

The above addendum is accepted by Shell.  That is what you need, unless you can

get something else that you want.  They are $3,000 per acre and 15% net.

No competition, no change...

Permalink Reply by George Brown on October 5, 2011 at 4:26am

Thanks Terry.

 

I'll give your addendum a try when I meet with them.

Permalink Reply by Dave on October 4, 2011 at 2:43pm

 

net royalty @ well head not gross @ wellhead  I would think is that is a good thing

gross would be subject to deductions

Permalink Reply by Mike h on October 5, 2011 at 6:10am
David, you need to look up the definitions for "net royalty" and "gross royalty". Net is after deductions, gross is with no deductions (as in gross revenue).
Permalink Reply by eric jenson on October 5, 2011 at 6:07am

Good point Dave!  Lots of TALK!   Range offered us 600.00/12.5%  We did not reply.   He never came back to make another offer. (1 month ago) Im not sure he will??  But looking around the region one may think they will!  I hope the utica is thick enough for them here in central venango county???????

Permalink Reply by matthew h mcsparren on October 5, 2011 at 12:40pm
 Eric What part of Venango county are you in? Was Ranges offer of 600.00 per acre payable per year for five years?  We are in Cranberry township.  
Permalink Reply by Dave on October 5, 2011 at 10:08am

MIKE!

thats why they should take away my computer after dark you are correct

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