VIDEO: $20,000 PER ACRE LEASE............LET THE PLAY DEVELOP

Pimm Fox interview with Nicholas Atencio, chief executive officer of Mainland Resources Inc.
Lease cost discussion starts at about the 1:30 mark in the video.

http://www.bloomberg.com/video/65507056/

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Permalink Reply by Mike Knapp on December 28, 2010 at 4:33am
having a pipeline across your property that a gas company would be able to sell gas into makes your property more attractive to  drilling companies, and more attractive = more valuable.
Permalink Reply by Henry J. Cittone on December 29, 2010 at 1:07pm

being close to a pipeline makes it easier for the gas co. to sell the gas they extract.  Without a pipe to take it to market...the gas well is pointless.

 

Look at this map as an example.  Note the proliferation of wells near the big blue pipeline.

 

http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid...

 

 

 

Permalink Reply by Bert Holmes on December 29, 2010 at 8:59am
Wow, this looks more like basic "scare tactics" and misinformation. LOL. LEASE NOW AT REDUCED RATES AND BE HAPPY ... OR YOU WILL BE SORRY!!! Sorry, but I'm not buying this.
Permalink Reply by Mike Knapp on December 29, 2010 at 11:01am
Explaining to people the disparity in price between large chunks of HBP land vs small chunks of open land is not misinformation or scare tactics. It's a factual description of the market.

I'm just trying to put things into perspective for people. But thanks for the kind words, LOL.
Permalink Reply by wadea william saad on December 27, 2010 at 7:28am
i read over and over about companies turning leased acreage to another company for 20,000usd and more or less, its a fact , so gasholic is a riot but correct ,regardless of the numbers  , it does not hurt to ask for your cut if your leasing company holds your land , no drilling , then turn over the lease to someone else at huge profits while the land owner left standing in the wind for sometime alone without royalty , you deserve the cut , and this does not scare away companies , its good business manners .
Permalink Reply by gasoholic on January 3, 2011 at 1:24pm

Mr. Knapp,

  What do you speculate that the acreage your company is putting up might bring ?

Permalink Reply by wadea william saad on January 3, 2011 at 4:01pm

to gasoholic,            

new yourk southern tier is where  I M in, DELAWARE COUNTY , THE CORE  of the marcellus , utica, and few more , if NEW YORK GOV.allows horizontal drilling and get   get their act together by june , we will be seeing another land rush, only this time there are landowner groups , more than  just individual owners ,  I see companies paying much more this time around ,  companies have 6 months to think when to get in on leasing southern tier .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

 

Permalink Reply by Mike Knapp on January 4, 2011 at 3:19am

We have been advised to expect somewhere between 8-12K per acre, same as what most of these other large acreage deals have been going for.   Nothing groundbreaking there.  Were the market a little better, I could have seen it going higher as the acreage is so condensed (approaching 400K almost completely confined to four main counties), but with the market being down I think we'll fall somewhere in the projected range.  

 

 

Permalink Reply by wadea william saad on January 4, 2011 at 4:24am
TO gasohoic and  MIKE . AGAIN THE SPECULATION IS TIED IN N.Y. TO HORIZONTAL DRILLING PERMITS , ALSO THE COMPETION AND THE FOREIGN CAPITAL PARTICIPATION,HOWEVER THE RANGE SET BY m R. MIKE IS NOT FAR FETCHED, BUT A LANDOWNER GROUP MIGHT NEED MORE INFO. ON THE ASSUMED LIFE OF A WELL IN EASTERN SOUTHERN TIER  n.y. A S WELL AS THE EDUCATED GRAPH FOR THE DECLINE RATE , THERE IS NO ENOUGH HISTORY TO THAT , BUT IN PENS. STATE , THERE MUST BE INFORMATION AS A GUIDE TO VALUE THE SOUTHERN TIER OF  n.y. and properly value acreage upfront lease value .8 -  12 k is proper range as a start no ifs or buts .I  m within 3 miles from the mellenium pipe line on interstate 88 away from the watershed area about 10 miles ,  and following gov. como and n.y.dec. and the drbc regulations updates . when u have 3 kids in college , even with scholarships , they need extra income ,  GOD  help us all .
Permalink Reply by Interested Party on December 25, 2010 at 11:10am
I am in no way involved or associated with the oil & gas business but want to point out that the objective in the stock market is to buy low, sell high.   The objective with art, card, antique collectors is to buy low, sell high.   The objective of people selling concert and NFL tickets on Stub Hub or Ebay is to ratchet up their initial investment and sell high. Why shouldn't a gas/oil company or land lease agent be entitled to do the same for profit and to make a living?  It is up the each individual landowner to get smart on what they are doing.  What might be a "good" deal to someone, might be a "bad" deal to another.  I'm hedging that the more a landowner demands in a lease, the less likely that they will get any offers or activity on their property.   I can walk into the car dealer and ask for 50% off the dealer invoice, free tires, free inspections, and free car washes for life -- and they will simply say "no thanks." What company is going to write an addendum that if they assign the lease to another party for big dollars, that you will be entitled to a percentage of the upsale?   Guess what I'm saying is that asking for too much could shut out those who could profit from O&G is some manner.
0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on January 1, 2011 at 11:46am

Hi Interested Party...and happy new year to you and all here!

you said...The objective with art, card, antique collectors is to buy low, sell high.   The objective of people selling concert and NFL tickets on Stub Hub or Ebay is to ratchet up their initial investment and sell high. Why shouldn't a gas/oil company or land lease agent be entitled to do the same for profit and to make a living. 

You speak of one time sales...with no invvolvement of the product with the initial seller after the purchase of the product.   We are talking about the lands under people's homes and farms and businesses that are ongoing with activity after the initial contract...not the same.

On top of that if one negotiates low towards the Lessor then using their technical skills and obtains info about the value of the shale and what's under it and then doeesn't even disclose it to the landowner?...then goes and makes a profit with that info and doesn't involve the lessor?....sure it may be good profit business for the lessee but not good ongoing relationships with the lessor when they find out they have low balled and have to deal with these companies ongoing or to whomever they assitgned it to..   Not a good business transaction...   for the landowner.

Now if the landowner has no idea of how to do NG business and they are just as happy to have what they received....fine.   But what if the landowner was told fibs about the value by the landmen and then find out that they could have derived more up front and in royalty?   those are the ones that have been hurt.   And then the problem of fracking and horizontal drilling concerns..even the concern over who is watchdogging the royalty at the drillhead?     These events of card and ticket sales are in nooo way compared to what a five year lease is about between a landowner and the O and G company. 

P.s. I had trouble with the edit features in adding my reply...sorry for the bold type and italics and even line at left...couldn't work it.

Permalink Reply by wadea william saad on December 26, 2010 at 6:30am
you saying asking too much can scare away a gas company from leasing my property, I  m with you but every thing is negotiable within the unique position of every individual , one should learn when to hold them or when to fold them, but please dont be intimidated that they may walk away and never return, knowledge is power , when you sit down inittialy with let us say the land man, you should have enough knowledge , at least basics of leasing , negotiations,and facts of the area and your land and facts about the company activities in the area,then the land man will respect you very much , work with you ,being lame duck , yes sir no sir type of a person or afraid to ask ,least they run away from you will bring you the 100 /acre lease ,and with a speculative company who is interested in racking up acreage on cheap lease and flip them to the driller .....and i dont think gas companies are reading this right now either

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