Replies to This Discussion

Permalink Reply by Oliver Perry on June 19, 2013 at 9:43pm

I have heard XTO offered the same amount to others in your area. You might be able to do better than that if they need your acreage to fill in a unit. I would certainly counter their offer with something somewhat higher and hope to settle in the middle.

And definitely no deductions for anything on the royalty. Good luck to you.

Permalink Reply by FairMktValue on June 21, 2013 at 7:10am

I agree w/everything Oliver has said above. Esp Deductions.

IMHO that is really a lowball offer.

2 to 3 times that amount would be a good start.

I am not that familiar with Clearfield Twp and have not been following XTO very closely so my free advice may be worth exactly what you paid for it.

Depending on your situation (ie, How bad do ya need the money) I would just say NO at this point. Wait for a better offer. When and if they really want your property they will offer a much more reasonable amount. 

XTO has a new processing plant in Penn Twp which actually is not that far away. They are gonna want to feed that thing. There very well be some existing pipelines a lot closer.  I have not a clue what XTOs intentions are for Clearfield Twp (Crystal Ball is a bit cloudy right now) but it would seem they are gonna head that way sooner or later. Maybe a year, maybe 5, who knows. 

I would not worry about getting passed by - the O & G companies are gonna lease every square inch of Butler Co. that they can. Might take a while, but it is gonna happen,

If you are in a position to wait them out, I would wait for a much better offer.

Permalink Reply by mercersailor on June 21, 2013 at 9:54am

I recieved the same offer six monthes ago. I am about 2 miles from the welter rig.. just not sure prices will be better in a year. Feel like I am missing the wave.

Permalink Reply by Oliver Perry on June 21, 2013 at 2:13pm

I know the feeling. The good thing is they are repeatedly making offers to you, so it seems to me they must have plans for your area in the not too distant future. How far are you from the Cypher A & B Units? Those four wells were spud in April, and are about 1.87 miles southeast of the Welter Pad.

XTO may declare the Cypher Units soon, is it possible you are close enough to be in one of those units?

Regardless, if they are seeking you out, that should give you some leverage to negotiate better terms than what they offered initially, which weren't too good in my opinion. 

Permalink Reply by Oliver Perry on June 21, 2013 at 3:23pm

mercersailor,

In case you are near the Cypher Units I attached the well plats for those four wells. Even if they are not that close to you, the plats might be of interest to you or other landowners in Clearfield Township. There are nine wells planned for that pad and the unit configurations will likely change some from what is shown on the plats.

Attachments:

• XTO - Cypher A & B Unit Well Plats.pdf, 1.2 MB

Permalink Reply by mercersailor on June 21, 2013 at 4:01pm

thanks for the file it was very informative I don't I think I'll be part of that unit as I am to the east and more directly south from the Welter siteit seems with all that activity they would want to drill my lawn so I think it's highly likely to see a well if I were to sign

Permalink Reply by Bignose99 on June 27, 2013 at 9:19am

I am probably about 1.5 miles from the Cypher units as the crow flies.

Permalink Reply by Bignose99 on June 27, 2013 at 9:15am

I got the same offer last night.  My neighbor, who has half the land that I do, got an offer from XTO 3 months ago for 1200 per plus 15%.

Permalink Reply by mercersailor on June 27, 2013 at 10:26am

I have turned down the offer. I hope you let us know what you decide.

Permalink Reply by Bignose99 on June 29, 2013 at 8:01am

After receiving the offer in the mail, I have yet to officially be contacted by anyone. When I am contacted, I will be turning down the offer. What part of Clearfield Twp are you in?  My place is not far from the elementary school.

Permalink Reply by mercersailor on June 29, 2013 at 6:40pm

by game reserve and carbon center

Permalink Reply by Bignose99 on July 18, 2013 at 11:49am

Rep contacted me yesterday.  He said they wanted my property as a drill site, but refused to up the offer at all.  I told him I wasn't interested in signing for that amount of money.

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