Replies to This Discussion

Permalink Reply by FairMktValue on August 13, 2013 at 12:24am

Yes, as I may have mentioned before I believe Rex is going to be very active in Middlesex and Penn Twps in the next year or so.They need to HBP some of their older leases. 

I believe that was indicated in the earnings call in the questions section. If I recall this correctly: it was going to take into 2015 to get most of the leases locked up and then they were going to start putting 2,3,4 wells per pad at the same time. Makes perfect economic sense.

ps: Oliver, since you have "inside information" LOL  - if the Kennedy plats are available would you be so kind as to post them. 

Permalink Reply by Oliver Perry on August 13, 2013 at 10:22am

FMV,

I will get the Kennedy plats and post them, give me a couple of days. Also, I sent you a friend request in case you missed it.

Permalink Reply by FairMktValue on August 13, 2013 at 10:35am

Thanks Oliver.

Never even look at that page w/friends, did now. LOL

Permalink Reply by RB on August 13, 2013 at 11:21am

So there is recent activity. Thanks guys for looking into things. I'm wondering if my rep just got his directions confused. Meant north, not south.

Oliver, I signed up for sky alerts. Is that what you were referring to?

Fmv, I too sent you a friend request in order to PM you. Have you gotten on the bandwagon? Are you Oliver?

Rep said you need 250 acres to get gross.

Permalink Reply by FairMktValue on August 13, 2013 at 1:39pm

Rep said you need 250 acres to get gross.

Havent heard that one before. Have heard -

Oh no , we just don't do that.

Last guy that did that is no longer employed.

Well, there was a bidding war going on there.

2 weeks ago they put a moratorium on that.

I am just a middleman, if they really, really need your ground they might....

If you don't take this offer your going to miss out...

Well , I know most of that not to be true. I don;t say that lightly- why-

The last time my friendly land man was around I flat confronted him with the money and terms that Rex had just agreed to a few miles away on Brownsdale and Powell Rds and flat out said I would be a moron to take any thing less.

He did not really have a counter to that, just a lot of shuffling of feet and some mumbling to himself. He recovered quick enough and started throwing out stuff like maybe we can do a 10 yr lease etc.

He left saying he would take it back to Rex and if they really, really need my ground they might accept it.

Hey, the guy was just doing his job. Get the landowner to sign a lease that is 100% in the drillers favor - lowball upfront money, low royalty, max deductions , surface lease, etc.

Heck, your are never gonna beat em, just need to get the fairest deal possible. Need to say no more than they do.

Ok, off my soapbox, but...

Landowners, stand tall together, it is a good thing for all involved, lets get our fair share.

Wow, that last line was really corny, flashbackin to the 60's maybe. LOL

 

Permalink Reply by RB on August 13, 2013 at 1:49pm

so, what was the offer? You said 3k/acre was about best rate you've heard. was that offered?

Permalink Reply by FairMktValue on August 13, 2013 at 2:15pm

RB, I will quote myself from a prior post only because I type sooo painfully slow....

The best offer I have heard to be signed ( don't know if it has actually been paid yet) was by Rex - 3000 non surface, 3500 surface , 18% no deductions.

That would appear to be the top of the market around here at this point.Nottoo bad IMHO.

That said -I still think it is a tad low given the potential for the stacked pays - upfront money at least. The 18% w/no deductions - not bad at this point -don't think ya can get much better unless gas prices jump dramatically

No, that was not offered yet. Lowballed at 1500 , 15% deductions.

Permalink Reply by RB on August 13, 2013 at 2:22pm

OK, I presume you are in Middlesex.  I think my guy could get you 3k, per/ nonsurface, 17net.  Like?

Permalink Reply by FairMktValue on August 13, 2013 at 2:50pm

OK, I presume you are in Middlesex.  I think my guy could get you 3k, per/ nonsurface, 17net.  Like?

RB - HE AIN'T YOUR GUY - HE IS A LANDMAN!!

LIKE- NOOOOOOOOOOOOOO!!!!!!

 

Permalink Reply by RB on August 13, 2013 at 3:02pm

You are rude.  And your comment: "The last time my friendly land man was around" is obviously not your friend.  And mine does not knock on doors. Good luck!  

Permalink Reply by FairMktValue on August 14, 2013 at 12:01am

RB, I apologize for hollering above. It was a bit rude.

At the risk of sounding patronizing, I was just trying to get my point across. ie:

The landman is not your friend. 

He is an agent of the gas co., just doing his job.

It is a business transaction, the lease is a binding legal contract.   You will be held to every word in that contract for perhaps a hundred years.

I apologize again, it certainly was not my intention to offend.

Permalink Reply by RB on August 17, 2013 at 4:32am

FMV,

I accept your apology.  I am fully aware that the land man is an independent contractor.  I used "my guy" as a figure of speech.  Frankly, I figured I'd offer you an opportunity to negotiate with someone who was at least starting at twice the amount of the low ball offers from the land man you have been communicating with.

Anyway, based on the information you have gathered and shared, and anything else I could dig up, the offer was not bad, as you say. With a few modifications, we went ahead with it.  I figure, it is only for 5 years anyway. 

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