i recentley was offered a 16 percent royalty to lease property in cascade,lycoming co,anyone know the current status of that area?

 

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12.5% is the norm, so I would think that is a pretty good deal.  But I would only sign with a major outfit like Anadarko.  Some of the smaller players might offer you more but I have heard some horror stories about not getting paid etc.

Hi Justin,

 

12.5% is only  the norm for old existing leases, it would be considered a poor royalty for a new lease today.   16% is a good offer.  I worked with a client and we got 18% gross in April on a large tract.  I believe that 20% is possible depending upon the tract and other terms of the lease.   

it is anadarko..my aunt has the lease,is there a way to obtain the lease through the internet?im trying to find the exact 52 acres that they want us to lease..

 

we also got 16% and 4K from anadarko in cascasde twp, earlier this yr.

 

hows it looking?

 

I see Anadarko for cascade,I don't know how Exco compares.But their the ones that bought my lease from chief.

Our lease was 16% before deductions. From what i gather,  almost all of anadarko's leases were in that range at the time..  The market has changed since we signed, 2 yrs ago, but with the pipelin now in, it should make your lease more valuable.  From what i was told, the gas companies do trade leases beteween themseleves. At one time Senaca was interested in leasing our land to trade with Anadarko for leases in other areas. I see that they just put a drilling rig on the Frymire pad last week. They had permits for at least 6 wells there, but only drilled one or 2 last time the rig was there.  When the drill the wells in our area, they are drilling most of them in the southwest to northeast direction to get the best gas.  So if you are southwest or northeast of a  pad they will probably want your land. According to Anadarko's quarterly report they say that the wells are very good in our area.

Good Luck.    

Ron G

What Im wondering is if Exco trades with Anadarko,Will I still be eligible for royalties since my lease is not with them?I don't know if Exco has any wells out in Cascade.I was also told the gas companies are getting a high output of gas,in our area.

If you were to sign with Exco, and they traded leases with Anadarko, then Anadarko would own the lease and you would get royalties if they were to drill under your property. I would contact Anadarko to see if they are interested in leasing your property, as they hold most of the leases in Cascade Twp and are the only company drilling in Cascade twp. 

 

Around Rose Valley, they are hitting heretofore unheard of production rates for gas.  I have heard from a frac company numbers as high as 20mm/day.  That is purely third party data - but from a usually reliable source.  In contrast, the well at Farragut is down around 4mm/day - again third party feedback.

There must be good gas in the ground down in the Faragut area, or they wouldn't be drilling additional wells behind the Baptist church or puttin the new pad across from the school in.

 

Isthe well at Farragut just a vertical ?

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