Updated November 8, 2011
This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.
As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.
Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in
Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.
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Thanks Dan .
In looking at the plat that Dan attached, do I read correctly that the "drilling unit" is only 177.4 total acres? That seems small for a horizontal well. Many of the lease offers mention 600 or 640 acre drilling units. I realize this one only has one lateral but it seems it would draw gas from a larger area than the 177.4 acres that are designated as "Unit Area" on the plat.
Finnbear,
Each lateral will draw gas 300 ft. from each side of the lateral. Actually 300 ft. radius of the lateral, assuming you think in 3D.
Hi Dan Have you had a chance to get a copy of the drilling unit for the Sportsman Club well. Thanks Butch
That line shown on the ODNR gas map could be how it will run, but that horizontal permit is not in effect anymore. In May they had permits approved for an initial strat test, and then a resubmitted horizontal permit. But then they told ODNR to scrap those because they wanted to modify the permit. On June 1 they got their revised permit approved, which is only a vertical strat test well at this time. So they shouldn't be showing that horizontal lateral anymore on the map, although it will probably end up being there again when/if they revise the permit again to change to a horizontal production well.
It does go under state and private land, but either way I'm guessing that North American Coal Royalty Company owns all the minerals rights under the whole thing like they do with the Buell Well.
I have heard rumors that they are going to take the lateral northwest instead of southeast, or that they are going to develop Marcellus instead of Utica, but we'll have to wait for the revised permit to know for sure.
Dan,
where did you get this PDF?.....i'm looking for a plat for another permitted well that is currently under construction.
thanks
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