Comment

Comment by Shower Bath on September 7, 2011 at 4:19am

Let's try this link instead,

http://www.msnbc.msn.com/id/44423112

Randy

Comment by Shower Bath on September 7, 2011 at 4:11am

Guernsey Co is hot today. Another major player has emerged. Denver Col. based Petroleum Development Company (PDC) has secured approx 30,000 acres in Guernsey, Noble, Monroe,Morgan, and Washington counties. Most of it is HBP from older shallow well leases, but they state that they are looking for additional acreage in the wet zone of the Play.

http://www.msnbc.com/id/44423112

Randy

Comment by Shower Bath on September 7, 2011 at 3:29am

Big news this AM. Consol hasw entered into a JV that gives Hess Oil a 50% interest in Consols' Ohio Utica Shale Play. Hess is paying $6,000 per net acre for the wet zone counties of Harrison, Jefferson, Belmont, and Guernsey counties. There is an excellent map showing the wet zone and Consols' holdings on their website. Open the link below, go to the Investor Relations tab, then open presentations to analysts.

http://consolenergy.com/default.aspx

Randy

Comment by scott peterson on September 7, 2011 at 2:48am

John, the lease was paid up without Amarado doing a mineral rites check......?

Comment by John kamm on September 7, 2011 at 2:38am

I have been following this blog for several months with interest and appreciate the useful information that is being shared.

I did want to comment on posts from Dave Moore and Bob Caldwell on Aug 26 regarding Jeff Riggans and Amarado Oil. Jeff is a landman for Amarado, his son, Josh, is attending a local college. Josh was probably helping his dad with cold calls when he stopped by to see Dave Moore.

Jeff is one of the top landmen with Amarado Oil, a privately held development and production company based in Texas and with an office in Powell, OH. They have partnered with McGonagle Energy, a family-owned, Ohio based development company that began operations back in the 70's. Together they opened an office here in Cambridge last Spring and currently employ about a dozen people.

Amarado is experienced, well-funded and positioned to be a major player in the development of the Utica formation in Eastern Ohio. Their holdings in Texas are producing in excess of 20,000 Bopd. I have spoken with a number of landowners who have had dealings with them and the consensus is that they are offering competitive paid-up signing bonuses and higher royalties for individual landowners as well as groups of owners. Owners have received their checks the day they sign the lease.

Their standard lease is a bit brief but it is written to be amended to suit the specific needs and concerns of the landowner. I know of 3 attorneys (different firms) in Cambridge who are familiar with Amarado's lease and have prepared amendments for their clients; Keith Plummer, Dave Bennett and Dick Baker. Last I heard, none of them charge 4%.

With all of the leasing agents, specialty law firms, owner groups and international corporations who are being attracted to Eastern Ohio, Amarado offers the landowner the opportunity to work directly with a production company. In my opinion, it is an option that should be considered.

Comment by Finnbear on September 3, 2011 at 3:59pm

Here is a link to an article written by a prominent oil & gas attorney about lease clauses often found in leases offered  in the Utica and Marcellus Shale plays. Interesting reading and reinforces the fact that you MUST have a good landowner-friendly lease that you FULLY understand.

Unusual Ohio Oil and Gas Lease Provisions

Comment by Shower Bath on August 30, 2011 at 1:42am

A great short article regarding the value of NGLs (natural gas liquids) which helps in understanding the high value of the wet zone play in Ohios' Utica. Make sure any lease you sign covers all hydrocarbons (Ethane, Propane,etc.), or you could be very disapointed when you get that royalty check.

http://seekingalpha.com/article/290406-the-role-of-ngls-in-increase...

Randy

Comment by Philip Brutz on August 27, 2011 at 5:13am

That is the way I read it>

Comment by Private KeepOut on August 27, 2011 at 1:42am

Jon, not only that, but the language regarding the bonus payment is really screwy too! Eclipse calls it an "ADVANCED DELAY RENTALS: To pay to the Lessor within 90 days of the Lease Date, as pre-paid delay rentals, the sum of $2600.00 per net mineral acre (the "Advanced Delay Rental Payment") Notwithstanding anything contained anywhere in this Lease or any public law to the contrary, The parties hereto stipulate and agree that this is a "Paid Up" Lease with no further delay rental or delay in marketing payments due to Lessor during the Primary Term hereof, and that any and all bonuses and delay rentals due or payable hereunder have been prepaid to Lessor for the purpose of keeping this Lease in effect during and for the entirety of the Primary Term. In accepting the bonuses and delay rentals, Lessor and Lessee stipulate and agree that it is deemed for all purposes that all delay rentals have been timely paid on the anniversary date of this Lease on any annual basis, regardless of when same shall have been actually tendered to Lessor.

 

Correct me if I'm wrong, but my interpretation of this is that they can tie up your land (no exploration, drilling...etc) for at least the length of the primary term.

Comment by Jon Henderson on August 26, 2011 at 10:49pm

Those 2 clauses below look terrible for a landowner. I'm no expert by any means, but those clauses look like they could tie up your land for a long time without much of a payment after the original bonus. Better hope they default on the 120 day payment window.

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