Will there be a resurgence of Land Groups in the wake of Gascos like Rex being too weak to re-pay signing bonuses to extend leases?

In my neck of the woods , Rex holds most leases and isn't extending as they expire.
Hmmm....could be an opportunity to regroup and prepare for future assaults on our minerals.
If anyone knows of any land groups forming in Southern Lawrence County PA , please pass it on!

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Forget it, no one wants that bogus Rex leasehold, Oh Oh wait a second maybe the mighty emporer of the North Hillcorp will take them and drill but i kind of doubt it. If the economics dont work the leasehold is worthless or some other carpetbagger would come in and sign it up at 1/4 of original price. Look for $500.00 an acre in Lawrence and by the year leases no paid up 5 year term.

Wow! No sense beating around the bush I guess! Lol!
Who do you suppose will be leasing then? As far as economics goes , @sub $2.00 mmcf , who is feasible?
Please explain your bitterness towards our local mineral
quality. I believe we sit on a gold mine of stacked plays!!!!!
I agree Barb, Hilcorp is pretty much the only player left in Lawrance and Mercer county, they are taking advantage of the situation by not leasing anyone unless they need them to finish a unit and the prices they are paying are next to nothing, they were more concerned about giving all their employees a fat bonus of $100,000 each. We own over 1000 acres in one block in Mercer county that Hilcorp was supposed to lease from us for $3000 and 18% and they pulled the offer, I hope another company moves into the area so they won't keep screwing landowners and try to lease the property for nothing.

Which Township in Mercer County is your acreage located. We have many parcels in various townships available for lease as well. Just trying to captures their area of interest. Thank you

Trapper I don't see much happening until Shell announces the cracker plant. With gas prices where they are now what's the point in drilling or even leasing. I prefer to sit it out for a while, have no problem leaving mine to my children and let them deal with it. Another possibility is that Hilcorp and Carlsyle may be planning an expansion or acquisition (think Rex) locally and re-leasing at rock bottom prices. I think that would be a brilliant move on their part. No need to hurry, the gas isn't going anywhere.

I think the time to act is after the cracker is announced, and then we have to form another land group to get any kind of decent deal, or wait several years and let the price of gas recover to "decent" levels..

Yes Chris , I think Shell's announcement is pivotal also.
I think now may be a great time to get folks together and regroup for the next assault. I went it alone the first time and did OK but I see the future as a different animal. Please let us know of any organizational efforts that may be afoot.

I was part of the original Mt Jackson group so we still have until 9/16 for a possible renewal so not much point in my doing anything at this time. Having said that I don't think our lease will be renewed.

My neighbors expired this past fall. I expire Oct. 2016.
Hopefully new group organizers will spring up. I see an impending demand for them!

I hope you are right, but I think until the price of gas gets considerably higher not much will happen.

Do you think drilling will pick up if Shell announces it is going ahead with the cracker plant? I'm concerned that with the prices of gas so low in this area, they won't build out much more until prices go way up. My understanding, and correct me if I'm wrong, is that Shell was building to take advantage of the low prices of ethane in the area. With drilling going way down as it has, how much ethane is there to even sell to Shell? It's kind of a double edged sword effect going on here, but maybe I don't understand it well enough. 

a good portion of the gas that comes out of the well is ethane.

IMHO......We now know the high production areas. People with leases in those areas will be renewed if there is such a clause in their leases. People in less productive areas will be low-balled if they get any offers at all.


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