Replies to This Discussion

Permalink Reply by craig on December 23, 2014 at 5:43pm

What a quagmire in your area to be sure Nancy. I don't think we can surmise much from your situation. Too many if's and but's and maybe's to speculate. I'd  have to say that if CHK is spending money, it is for a good reason as their purse strings have been tight for some time now.

Merry Christmas to all !

Permalink Reply by Gary on December 24, 2014 at 2:37am

Yes that is interesting..if they are resigning they will be forking out some big cash because I think alot of their leases are  going  to expire within the next two years ,like yours Nancy..If CHK is going to sell them they are planning on getting more than $3500.00..Southwestern bought for $13,000.00 an acre ..hopefully they will sell them to RRC..seems to me that this is a good sign for our area as far as activity...I agree that CHK is doing this for a good reason..could it be that they have a buyer on the hook and need the leases current to include the acreage?..Also it seems that the acreage that you are mentioning is touching the acreage that RRC leased last year (including me) so could they be building a 1200 acre unit??maby wishfull thinking on my part..LOL..I find it interesting that they would be leasing at this time of the fiscal year..the $5.4 Billion that CHK got from Southwestern must be burning a hole in their pockets..LOL..Oh well time will tell....2015 will be a new year for us to keep our ears to the ground ...Thank You all and Merry Christmas.

Permalink Reply by mlb on December 24, 2014 at 2:29am

Nancy,

My father in law just got paid by CHK for renewal on his lease and he is in Ohio County, WV...which as I understand it was all bought up by Southwestern.  So perhaps part of the deal is that CHK had to keep leases current if not HBP there.  Could be the same for your farm.  My father in law is not even in a unit and they paid again. 

I will have to ask him how long he had to go on his lease..I think it was about 90 days but am not 100% on that.   

If you are not in a unit you might luck out and get paid again!  ( not all bad even if CHK )

Permalink Reply by Nancy LeNau on December 31, 2014 at 3:19pm

I talked to a lot of people today and everyone around me are receiving checks from CHK.  Not, just on my road but most of Hookstown and parts of Hanover are also receiving checks from CHK.  A lot of people in Hancock leased to CHK. for $5.00 per acre and now they have sold to Southwestern for BIG $$.  I am not positive but I think the same thing is happening here. Except Range might be the buyer.  I sure hope... Range is the buyer.  Anyway, That is the news in my part of the area.  May the Blessings of 2015 be with ALL of You !   God Bless you ALL !  

Permalink Reply by craig on December 31, 2014 at 3:24pm

Nancy,

Thanks for the time you took to gather this information!

Permalink Reply by Todd on December 31, 2014 at 6:52pm

Nancy,
Based on the 25 page transcript I read today from Southwestern, you'd be in great shape with them also and that is possible.
Thank you for gathering this information on the ground -- very helpful for everyone! :-) Are most folks you talked to receiving $3500 and 18% with no deductions or is there a range in the bonus amounts and royalty percentages?
To give you an idea of the value of what's under us, Steve Mueller (CEO of SWN) said that their finder's cost on the northern WV acquisition equates to $0.12 per mcfe!! That's for the 45 Tcfe of recoverable reserves from known strata in the 443,000 net acres after paying about $5 Billion or over $12,000 per acre.
I saw on the Beaver County recorder's website that many folks in Hanover TWP have leased with Range as I think I previously communicated.

Thanks for all your help everybody!!
God Bless you all as well!! :-)

Todd

Permalink Reply by Nancy LeNau on January 1, 2015 at 4:12pm

Todd, Different prices for different individuals.  The $3,500.00 are few.  Most are $2,500.00 and 18 %.  No Deductions.  This is also happening in Georgetown.  Thank you again for your information !  I would be happy with anyone...other than CHK !  I will call George tomorrow and see what he has to say. I am just really confused why Range is leasing with Ron ?  This  $$ has helped so many in my area.  At this point, I see it as a Blessing.  Again, Thank you for this information and all the information you have given to me in the past.  God Bless You and your Beautiful Family .  Our Farm is ALWAYS... Open to you and your family... Miss you !   Nancy LeNau

Permalink Reply by Todd on January 3, 2015 at 8:30am

Nancy,
As always, thank you for your kind words!!
I am very happy to hear that a lot of good people/neighbors are receiving substantial sums of money to help their families. Maybe 2015 will be the year that I get a good lease... We'll see! Leasing activity in Greene and Hanover TWP's certainly seems to have gotten hot recently. Anyone else in other Beaver County TWP's having any leasing activity, please chime in!

Talk soon Nancy,
Todd

Permalink Reply by Todd on January 3, 2015 at 8:34am

It does seem illogical for Range to allow CHK to lease all that property and escalate the price for a RRC assignment from CHK. I wonder if Range has also approached the folks that have signed with CHK?

Permalink Reply by Charles on January 15, 2015 at 5:10am

Update FYI I am in the middle of renewing my lease which ends Dec 2015 with RRC.  The best offer they are giving me at this time is 2000/A & 17% no drill, or 2250/A & 17% with drilling, both are with deductions.  My lawyer states that RRC will not go any higher at this time due the following:  natural gas prices are falling, the have brought out most of the other gas oil co in the Raccoon and some of the other townships around it,  and they may be pulling back all of the current renewals that they have not signed the rest of 2015.. My lawyer who has worked in the OIL & Gas business for years says that RRC is now tighten their belts and waiting to see what happens the rest of the year with gas prices before they sink any new wells in Southern Beaver area.  I am trying to get renewed now before they decide to stop all future lease renewals in the area.  The way I hear it if I wait for a better price or wait to the end of the year when my lease is over  - they is a a 95% chance that I will lost my lease with them and their will not resign in the next year or so, or ever.  

Permalink Reply by craig on January 15, 2015 at 1:52pm

 The only advice I can tell you is that these companies never ever divulge any information unless they have to. 

I do agree with your lawyers overall assessment, but I believe there is more to it than that.

Permalink Reply by Todd on January 15, 2015 at 2:22pm

Charles,
I managed to get out of a CHK HBP lease so I am unleased and am part of an approximate 7500 acre land group in Hancock. I learned the hard way and was lucky to get out of a HBP situation with a old lease. Why don't you ask your attorney about forming a land group. RRC is playing hardball with landowners now and what they're saying to you guys is in stark contrast to what they show in their investor presentations. We're all sitting a mountain of gas and liquids. Southwestern is super happy to acquire the northern WV panhandle at over $12,000 per acre from CHK. There is a ton of new natural gas demand coming from power generation on the eastern seaboard.

Private message me and I can give you some contacts who might be able to get you into a land group ~ I wish you guys in Beaver County would join together if possible because RRC is playing divide and conquer. Same thing happening around Burgettstown with RRC. The more acres you can get in a landgroup, the better you can negotiate royalties & lease terms.

Just remember that this may be the only chance you get to sign a lease. 2018 appears to be RRC's drilling estimation time for northern Wash and southern Beaver County.

Good Luck, Todd

• ‹ Previous
• 1
• 2
• 3
• 4
• Next ›
• Page