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 WVU78 on December 30, 2010 at 12:24am

It is important to realize that the price you get for your acreage must be negotiated by you for your own piece of the Marcellus pie....but if you are going to wait around for $20,000 per acre, you may price yourself out of the play completely.  Mike Knapp is correct in his explanation of this industry.  We have not seen prices anywhere near $20,000.  But be aware that it may be cheaper for a company to bypass your 100 acres and develop next to you or in another township. 

There are only so many rigs, only so much capital and in my 30+ years of working in this industry, I have yet to see every piece of property drilled and produced! (except in Indiana county, PA  LOL)  That was a joke because of the number of shallow wells drilled there.

So just because you have acreage doesn't mean a company will lease at any cost.  I am just telling you how it has worked over the past 30 years in this business.

Permalink Reply by wadea william saad on December 30, 2010 at 4:35am

happy new year MIKE

 FIRST GASOHOLIC DID NOT PROPOSE 20,000USD/ACRE ,THE CONVERSATION IS SPIRALING OUT OF THE CONTENT OF THE VIDEO AND INSPIRED IN PART BY THE PRACTICE OF VERY CHEAP LEASING FOR LONG LEASE , AND WITHOUT DRILLING THE LEASE IS TURNED OVER AT 20, 000 OR AROUND THIS NUMBER TO ANOTHER COMPANY WHO WANTS CONTINOUS STRETCH OF LAND OR WHATEVER REASON ,INTERESTING WHAT YOU SAID IN YOUR POSTING  DEC.27 YOU OWN GAS FIRM THAT COULD DISH OUT 80%OF THE PROCEEDS OF FLIPPING A LEASE      WITH ANOTHER COMPANY  ,   BACK TO THE LAND OWNER , I WILL TAKE LESS , LET US USE E. MAIL

Permalink Reply by Daniel Rupert on December 30, 2010 at 2:28pm
Gasoline is predicted to hit $4 a gallon this spring and $5 dollars a gallon by the next election 11/12...we need to stop this transfer of wealth as soon as possible...PERIOD!!!!Pickens is right...PERIOD!!!!!We have to be proactive here and not reactive...PERIOD!!!!The technology to get the gas is here...PERIOD!!!!The technology to mass produce vehicles is here...PERIOD!!!!We need real leadership now...PERIOD!!!!This is the opportunity for our economy not only to recover, but to grow at an enormous rate!!!! PERIOD!!!!Please, anybody out there...we can't just watch gas increase in price and do NOTHING!!!

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