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.
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..
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.
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.