I spoke with Bob Rea and yes the offer is with Chesapeake Energy for $5800 per acre and 20% gross wellhead. No transportation, or marketing cost of any kind. And YES they want all of Belmont County, even southeast belmont that everyone says no one wants and are signing now. I have the lease and it is the best one I have seen yet.
do u have a point of contact, number
Bob Rea 330-831-0740
who is Bob Rea? What does he do/belong to?
Belmont Co only? Or will they accept leases from surrounding counties such as Jefferson, Harrison, etc.?
not sure what other areas I only asked about Belmont County
This is becoming an interesting situation when chesapeake just sold off 1/3 of it's holdings for $15,000 per acre and is still able to buy for $5800 and less in some areas . What is everybody else's outlook on this situation
Hey Mick hope all is well , I think that Chesapeake has the pockets to gamble , with this changing environment does everyone else ? Bird in the hand ----> ?
yes this is true h bo , but really they know they are not gambling since the oil companies see the true picture of how much it does cost to produce offshore oil and other areas that are harder to recover even than the shale products,
I think many still people still believe that we have plenty of oil and it can be gotten cheaply , but I have followed a lot of stock information through the years and the costs are astronomical that are involved from discovery to production.
There is a lot of expense involved with the needed infrastructure needed to transport the gas and oil around the various areas .
It usually gets filtered into the prices we end up paying for the final products that we buy .
Just look at how the electric bill is laid out anymore , you pay for the power and the transmission lines it travels across as well as the taxes and various other costs . This works out the same with all of the costs required to process and sell the oil as well .We will pay for everything needed to make it work .
Oil is probably easier than many products to sell ,but it still costs a lot to get all the diucks in a row to actually sell the end products.
To be honest the large companies know they will wear people down at some point with the worry and general economy .
My honest thought is that we as a state got blind sided to some degree with the really cheap prices paid , but the people did agree to those leases , It is sad when you make decisions without the needed information to know what to do .
But it had to start someplace at some lower prices to establish a history of production and how good this discovery truly was . This is something we must thank all those that have gone ahead and allowed this to happen for the betterment of everyone .
The land has been leased very reasonable when you really look from the profitability point. And it has been kept from sky rocketing because of all of the things that you keep hearing about fracking and other political worries as well as general production needs .
Even on this site look at how many times someone has posted comments that make you think the worst and that you may miss out . Who do you think is behind several of these worrisome reports
Like I posted here before when you can basically take the production that was gotten from the Harrison buell well and multipy it by a 4 month period and get a return of over $10,000,000 on the low side there is proof that there will be a lot of profit made ,
As you know there are a lot of companies that are trained to either advertise a new product thats better than sliced bread or as bad as fear of a communicable disease .
This is what keeps happening with our leases . one time everything looks great ,then you hear about something that creates worry . I beleive the truth is that our country needs this shot in tha arm enough that these fracking bans will be put aside because the political controlling entities know the shape our economy is in and we need the taxes and jobs this will create to keep our country from falling on it's face .
You can easily see what is happening that is raising the oil prices quickly .but we have so much economical downturn that is keeping the leases lower so far .
Once the oil get's a little higher the lease prices will have to jump up a lot because the companies will be fighting to control as much reserve oil as they can for future profits .
This is why the prices have not rose to the Texas prices in 2008 .
There have been sites that show the EagleFord shale at $35k and 27.5% and it was in 2008 when oil was $160 . Now oil is bumping $100 again and Chesapeake recently sold part of their holdings for about half at $15,000 per acre . The company that is backing them knows as oil prices rise it will be easier for them to pay for their future drilling committment which was part of the $15,000 promise to pay . They will make more money as time moves forward .
There is no doubt if the oil companies can re sell our lands for this price our leases should be commanding higher prices . Regardless of what anyone thinks without the land first the oil will not be retrieved . But on the flip side we can't develop it without their help .
I thought the leases should have been set up ,once the equipment has been paid for the royalty should go up for the landowner especially since the production will get lower as time goes by . I have read that some ;leases have been set up this way in the past . But this was only a pipe dream
My greatest worry s that the foreign companies get too big of a hold on the leases and if they ship too much Liquified Natural Gas and other products from our country we will have to keep paying the higher prices just like we have been doing for years because of all of the importing we normally do .
This should be a lot better for local people fairly close to the processing plants . Gasoline and oil products should remain very reasonable . We will see how this plays out in the next 10 years .
As our oil prices climb with all the foreign turmoil and general political disruptions such as attacks on each other 's refineries overseas .the land under us will command the high prices we have seen that happened in Texas .
Most people are having enough problems financially to not be able to wait that long though .
I just hope in the long run those that signed cheaply get a good return and an honest one . We will need to make sure to monitor all that we can to get a fair return .
Let;s just hope that most of Ohio has good potential and that life can become better for many of the people here and aroung the entire nation with all of these new shale finds .
I would certainly like to see our nation become the #1 respected country in the world again with the power within to keep our way of life and make it better for our children .
This can be accomplished by getting the unemployment down and have enough money for the various county needs through the taxes which will be gotten from the oil company sales .
Good luck and best wishes to all on our good fortune and future .
I love how everyone bitched about brokers flipping acreage but its ok for CHK to make $10k acre!!! Your hypocritical trolls!!!
you are right to some degree (shocked )
.but only the people staying together can cause the lease flippers and the companies that do that to change the final outcome .
It is in plain view of what has been done with the $15,000 sale but look at how the leases are still being signed .
But how often were people ill informed by some of the flippers
I don't think people like what has happened with Chesapeake sale but with all of the unknowns that people with smaller amount of property have they feel the pressure and give in when the money gets high enough to alter their lives for the better .
One big difference with Chesapeake is the fact that they sold for what they did and made a deal that will insure future drilling and production . This way the acres get developed .How many lease flippers can make that promise
We as individuals don't have that option to control the final outcome of production.
But the lease flippers that had the worst outlook were those that tried to keep ahead of the companies and get the acres very cheap and they never had a company that was capable of production ,they just were in it for the money and sold to the highest bidder or already had a guaranteed sale promise .
At least Chesapeake is in itself ,an established producer ,and they are dealing with companies that intend to develop the lease together with them .
But we just have to face it everyone is in it for the best money in the end .But the groups that remain strong have done the best so far .
Just heard that ALOV/Buckeye Mineral does NOT have a hard offer for just anything in Belmont County. Bob recommended looking at plat maps and reviewing what acreage was already leased. If enough acreage was available for a unit, then he could submit it to Chesapeake but nothing is guaranteed. This was completely different than what I've been told by some of the people I spoke with on the phone at ALOV/Buckeye Mineral.
What a load of CRAP ! How would you like to commit to that 6 months .