BCLG UPDATE


We had a great meeting last Thursday with more acreage added to the group! For those that were not able to attend, we gave updates regarding the push by Shell to acquire more lease holdings in our area. Their current offer is $3000/ acre with a 15% gross royalty but the lease needs a lot of work! In addition it was concluded that our target was $4000/acre and 20% gross royalties. To jump into a gas company favored lease at these numbers is premature.
Our tactics to reach our goal will be:
1) Continue to work with Shell on the lease as well as the monetary apects.
2) Work with Rex, Chevron and Exxon (as well as any others that wish wish to throw their hat into the ring)
to create a competitive market for leasing in our area.
3) Acquire additional information to support the value of leasing in our area.
4) Continue to grow our group. We have grown and will continue to grow, which makes items 1,2 and 3 much more effective.



On that note, I will be meeting with both Exxon and Rex this next week and hope to set up another meeting with Chevron soon. The truest determination of the value of a product or service is through the application of "fair market value" and nothing achieves that better than competition!


Thanks to some digging by one of our members, who discovered that the data from the seismic testing could be available for a fee. I contacted the company that is handling the data conversion and analysis and yes it would be available in September at a rate of $2700 to $4000/ linear mile depending on the density of the area.. This is a 2D study and will only show what is directly below the sensors. If we were to purchase a few miles of this data, we would need to hire a geophysicist to analyze the data, but it could be an investment that would yield an excellent return for us as a whole.

We continue to advocate patience. Up to this point things moved very slowly, but now activity is picking up and will continue to do so. With this increase in activity will come more lucrative offers. Landowners jumped at opportunities just 2 weeks ago, signing prematurely at $1500 and 15% net and now look where those offers are.....what will be on the table 2 weeks or 2 months from now????? As long as we stick together we can achieve the lease that meets our requirements as set by the members of the group.