Comment

Comment by Jason on April 25, 2012 at 2:32am

1 year ago offers we're between 2000-3000 per acre in Hancock county. Last summer seismic testing was done from the New Manchester to Hardin Run to Wylie Ridge into Weirton on Route 2. They know what's in the ground.
But just know that while the offers are impressive, they won't go up forever. Bradford, PA is a prime example. 12 months ago offers were around 5-6000 an acre. Since they are all dry gas, companies are now moving out and those not leased are out considerable money.
I recently talked to an employee of Schlumberger at the Sheetz in Weirton. (this was after seeing 6 trucks drive by within 5 minutes last Wednesday) He said that many like him were moved from New York down to the WV panhandle due to the liquids. He said that the company was very pleased with the drilling results. His words. But if you Google Schlumberger, you'll get an idea of the company. They're global and they are here.
Good luck - Jason

Comment by Todd on April 24, 2012 at 4:01pm

Thanks for the update Jason! :)

Comment by Jason on April 24, 2012 at 10:14am

Allison Rig moving in. Part of it is currently stuck somewhere on Bell Hill. Flag man said that it takes 40 truck loads and a few days to get it up. Great news for the area.

Comment by Todd on April 22, 2012 at 8:43am

Dave, 

You're only taking dry natural gas into consideration with your scenario.  As you know, Hancock County is located in the "super-rich" area of the Marcellus/Upper Devonian shales in terms of organic content. 

This translates into oil, condensate (gasoline), and other natural gas liquids.  Assuming 1 barrel of oil = $100; 1 barrel of condensate =$80; and 1 barrel of other NGL's = $55 then we're talking about potentially MUCH MORE THEN $1400 per month.

One should review recent production in Washington County, PA by Range Resources in order to calculate accurate numbers... https://www.paoilandgasreporting.state.pa.us/publicreports/Modules/...

Comment by elizabeth cook on April 22, 2012 at 8:38am

I'd still like to know when the ones in charge of the Panhandle group are going to start doing something for the members who live in Brooke County, because if it's not soon, I'm pulling out.

Comment by David Wilharm on April 22, 2012 at 2:12am

Jim, I'm not sure what information you are using to make your calculation, but under current market conditions I do not believe that $1400/month difference is accurate.  Assuming a price of $2/mcf and daily production of 3 MMcf (million cubic feet), the difference between 17.5% and 20% appears to be about $135/month.

Here is a link to a royalty calculator:

http://geology.com/royalty/

Comment by Joni Lowers on April 22, 2012 at 2:06am

Remember - there's more than just bonus $'s and future royalties to consider when making a decision as to what lease is most favorable. For those who are concerned about the impact to their land, the addendums negotiated become equally important as the $$$.

Comment by Jim Gibson Tope Hill WV on April 21, 2012 at 4:34pm

small oil and gas company out of PA first play in WV Pleasant View,  I know leases will likely be sold, since I am so close to allison site, but would lock in good royalty.

If any knows of 20% gross and $4500 plus please share!

a simple comparision of 17.5%  verse 20% on 30 acres shows close to $1400 a month difference.

Comment by Jim Gibson Tope Hill WV on April 21, 2012 at 4:28pm

is in the ball park with the royalty being 20% if royalty is more important than one maybe 2 time payment of bonus/delayed rental payments

Comment by Len Bywaters on April 21, 2012 at 4:11pm

$3600 after fees really isn't in the ball park now

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