Looking to hear from anyone who has signed a lease offer in Belmont County

I'm looking to hear from ANYONE who has signed a lease offer in Belmont County. Please let us know if you've received payment or if you're still being strung along and waiting.

 

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Replies to This Discussion

Permalink Reply by BMR on June 22, 2011 at 1:41am
Yes.  No, ORC would only specify it if there WAS a minimum.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on June 13, 2011 at 2:51pm
Mason Dixon isn't drilling the Porterfield units, Marquette is.
Permalink Reply by Finnbear on June 13, 2011 at 3:07pm
The lease that Christopher Baugh sold to Mason-Dixon in Oct. 2008 was assigned to Marquette Exploration in April 2009. Porterfield leased to Marquette also.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on June 15, 2011 at 6:33am

Actually Porterfield leased to Solid Rock in 2006, but it's immaterial at this point.

 

Permalink Reply by Bernie Horabik on June 20, 2011 at 6:47am

Should I sign a lease for 2500 an acre in Belmont Co. this week?  Im really leaning

towards it; the lease has a renewal for 2500 so Im think of it has getting 5000 an acre

in 5 years and a month.  Doesnt that sound good?  Thats a lot new fence after I pay the

taxes.  Let me know if you think Im crazy?

Permalink Reply by BMR on June 20, 2011 at 6:52am

Sign at a price that you are happy with.  It could go up and it could go down.  That sounds like a great price to me but I'm not letting anyone else influence me on what I sign at.

 

But don't look at it as 5000/acre quite yet.  They could drill in the first five years and you would not receive payment for the 2nd 5 years.  This area could not play out and they decide not to renew for another 5 years.

Permalink Reply by Finnbear on June 20, 2011 at 8:01am

Is that with Gulfport via the Rokisky group? What is the royalty % ? is it a net or gross royalty (does it have a "no deductions" clause and how is it worded) ? What % are you giving up to the lease agent for bringing you this deal? If you are being pressured to sign quickly, history shows there is likely more money and/or better terms available. They tend to use high pressure tactics to lease the easy ones first and then come back with a better offer for the next round of lessors who didn't jump at the first offer.

If they drill in the first 5 years, then it is only $2500/ac. Does the renewal have a first right of refusal clause allowing you to look for a better offer toward then end of the primary term and give the lessee a chance to match it if they want to retain your acreage? 5 years from now the market may look a whole lot different, especially at the rate horizontal drilling and fracing technology is developing. They may be able to tap the Trenton Black River layer profitably by then. The whole market could go belly up if there is an accident somewhere and the greenies get their way. It is hard to tell right now. One thing to remember is that the upfront (signing bonus) is only a part of the equation. It could look like chump change if a good well is drilled and you are in that drilling unit. At that point, the terms of the lease far outweigh the signing bonus and you want the highest gross royalty lease you can get. The only reason to put your primary focus on the signing bonus is if you have an IMMEDIATE need for a cash infusion to keep from losing your property to bankruptcy or similar. A landman recently told me, "the signing bonus is spending money for you, the royalty is what will change the lives of your entire family".

There are other things going on in Belmont right now that look very promising.

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