Replies to This Discussion

Permalink Reply by Joseph-Ohio on June 27, 2012 at 1:46am

Reason I ask is because I see no sense in signing up with an outfit and tieing up our land for years and finding out that they aren't paying / drilling and then having to go to court for assistance in voiding the 'agreement'.

Land Banking on behalf of a Lessee isn't necessarily a bad thing - as long as they pay the agreed to 'signing bonus'.

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Permalink Reply by 0i7okn54zwbdo on June 27, 2012 at 2:57am

What part of the state are you interested in?  

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Permalink Reply by Joseph-Ohio on June 27, 2012 at 3:08am

Richmond Township, Ashtabula County, indicated (by the Ohio Geologic Survey maps and reports) as within the Prospective High Yield Oil and Wet Gas Window of the Point Pleasant, Utica Shale Play.

We're a few miles north of SR 6 and south of SR 167 on CR 33.

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Permalink Reply by 0i7okn54zwbdo on June 27, 2012 at 6:47am

As you go north the Point Pleasant thins and eventually disappears.  The OGS map indicates "prospective" high yield because there isn't much data to support any claims of production or conversely lack of production.  BP looks like the most realistic player up that way.  Maybe Black Ridge.  It's an area with a question mark, so if it were me I'd wait for better information and potentially better prices.

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Permalink Reply by Joseph-Ohio on June 27, 2012 at 7:01am

I heard about the Point Pleasant thinning north of 84 which is quite north of us.

Clinton wells abound in our area.

The source rock for the Clinton wells is the Utica Point Pleasant.

The Utica is 300 - 350 feet thick in our area.

However it appears that waiting is what's happening.

Perhaps they need money to lease more lands.

Would very much like to hear from BP or BlackRidge.

Standing by.

 

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Permalink Reply by 0i7okn54zwbdo on June 27, 2012 at 8:02am

"The source rock for the Clinton wells is the Utica Point Pleasant."

Though true it's important to point out that the vast majority of Clinton production in Ashtabula has been from natural gas with very few liquids present.  That could mean any number of things but it gives some pause as to the liquid potential of Ashtabula.  I keep thinking about how the three window map has changed over the last three years and wonder how many more times it'll have to be adjusted as more data is collected.

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Permalink Reply by Joseph-Ohio on June 27, 2012 at 8:21am

As I read the most up to date Ohio Geologic Survey Maps; they (generally) appear to indicate most of Ashtabula Utica predominantly in the 'Oil Window' with 'Oil, Wet Gas and Dry Gas' indicated in Southern and Central Ashtabula County.

Intuitively I would think that where there is Oil there will also be Gas and Wet Gas in transitional areas of the geology - thinking you have to have oil to have Gas (Wet or Dry).

Thinking only intuitively again and with the knowledge that Clinton wells have historically for the most part been low production as far as Oil is concerned (agreeing with you), leads me to conclude that the predominance of Ashtabula County Oil is locked in the Utica and today's new technology can recover it. 

Thinking my intuition is sound I'm seeking an appropriate Lessee.  A Lessee who pays and is landowner cognizant.

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Permalink Reply by 0i7okn54zwbdo on June 27, 2012 at 9:19am

Is ALOV still active up that way?  People seem to be happy with the way they've operated (for the most part) and they might be a good option for you.  

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Permalink Reply by Joseph-Ohio on June 27, 2012 at 9:45am

Up here a spin-off of ALOV seems to be trying to become active.  The name of the outfit is Buckeye Mineral.  They are Lease Marketeers as I have it.

I hear that they (Buckeye) had a meeting yesterday and an attendee posted (today) that the meeting was 'organizational'.  I took what he wrote as meaning that Buckey suggested that the Landowners themselves organize by talking to one another to attempt to solidify contiguous blocks of acreage prior to signing Buckeye's Marketing Agreement.   Here, I thought that's what happens when Landowners sign up with a Marketing Organization - organization being the purpose.  It sounds to me like they  (Buckeye) wants what Landowners consider to be contiguous blocks of acreage identified prior to signing their 'Marketing Agreement'. 

ALOV was non-profit as I have it.

I've seen an ALOV Sample Lease Agreement - twenty-six (26) pages it was.

I don't know how much Title Clearing work ALOV did.

Buckeye wants 2 3/4% of the 'Signing Bonus'.

I have not seen a Buckeye Sample Lease Agreement yet - but, that's not to say there's not such in circulation.

I hear Buckeye does no Title Clearing work leaving all of that up to the Landowner and the Landowner's Attorney.

That's all I got on ALOV spin-off (Buckeye).   

Permalink Reply by Joseph-Ohio on June 27, 2012 at 3:41pm

Why is it that I feel like I'm being talked around instead of talked to within a discussion of my own origin ?

Regarding Razor's comment to you:

'It's seems some people want everyone to everything for nothing, including clear their titles and deeds.'

Not so in our case - we just want to know what it is we would be buying with our 2 3/4% of our 'Signing Bonus' upon signing up with Buckeye.

We gather that it seems to turn out that what we buy with our signature with Buckeye is a Lease Agreement that we haven't had an opportunity to review / study marketed to as yet unknown developers.

How normal / usual and customary are such arrangements in your experience ?

BTW Title is clear - we've a Lease Extension expiring Sept. 2012 - what's wrong with looking for a Top Lease ahead of the expiration to accelerate things ?  Seems to us like these processes are made out  to be much more complicated than they actually are.  Also, it seems to us that there are more people trying to create more hurdles and obstacles than there are trying to get down to the business at hand.  What's the reasoning behind all of the delays in straight forward matters ?

Go ahead and ask a straight question and get ready to listen to alot of un-necessarily complicated and never direct so-called answers.  Everyone seems to be a politician these days and working un-necessary angles for unknown reasons.  Result: no progress.

Permalink Reply by Joseph-Ohio on June 27, 2012 at 11:58pm

I'm thinking all of this 'cloak and dagger' stuff is more than a bit much, however, I think I'm beginning to see through the smoke.  What good it does me remains to be seen.

From my perspective as a Landowner, I can see advantage for a 'Marketeer' to not be straight forward and forthcoming regarding who their prospective clients (the developer outfits that they are trying to sell signed Acreage to are) since individual Landowners and competitor 'Marketeers' may choose to contact the same developer outfits thereby undermining their competitive edge.

I can see that the Leasehold Agreement they (some 'Marketeers') are trying to sell is probably in flux and dependent on how many Acres and Landowners they have signed - thereby making it unlikely they (some 'Marketeers') would want to disclose the Leasehold Agreement they are trying to negotiate to prospective Landowner clients (as the Leasehold Agreement up for sale could change during the process of negotiation).

What's troubling is that as I read other posts I'm seeing that the Point Pleasant Utica Shale Play Leasing phase has been going on for quite a  while - in other areas of our State actual development is taking place - and that all of these preliminary posturing techniques (by now in my humble estimation) should be practically standard operating procedure and much more efficient.

I find it all totally aggravating and 'Landowner Hostile' by 'abject neglect' playing Landowners as pawns.

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