Lease Offers in Harrison County

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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Replies to This Discussion

Permalink Reply by Al Cramblett on August 3, 2011 at 2:35am

I'll share that when and if I get a deal.  I see many posts indicate the bet is against me.

Permalink Reply by Brent Laner on August 3, 2011 at 3:21am
The only thing I've learned is to never say never. A year ago the going rate was $500/A and 12.5% net. With Chesapeake's recent news release I believe 20-25% will become very doable.
Permalink Reply by FXEF on August 3, 2011 at 4:56am
CHK has leased many acres in other plays at 1/5 and 1/4 royalty. The driving factor is just how bad do they want the acreage and the competition from other operators. You may never see royalty at those rates, but it is possible. Now to those that are skeptical, take what they offer and be happy.
Permalink Reply by Finnbear on August 12, 2011 at 5:27pm
I received another letter from the Kenyon guy today. Same letter as before, but with a $2750/acre bonus instead of $2250. I emailed him and he responded that the offer is now $3500/acre. I asked a few more questions but he never got back to me.
Permalink Reply by scott jackovitch on August 13, 2011 at 1:03am

Would you be able to pass on which Kenyon guy you are working with ? I would like to speak with him . 

Permalink Reply by Finnbear on August 14, 2011 at 11:02am
I'm not working with him because his 1/8 royalty offer is pathetic and he seems a bit cocky. I'll send you a private message with his contact info if you want to contact him.
Finnbear
Permalink Reply by scott jackovitch on August 14, 2011 at 1:14pm
Ok thanks
Permalink Reply by Buckeye Fan on August 14, 2011 at 1:22pm
Call Donna Simpson at Kenyon, (740) 424-1533. She is extremely nice and will work with you.
Permalink Reply by Jim Harber on August 14, 2011 at 3:56pm
CHK is no longer the only Dog in town, there are plenty of other energy companies in the State that can do as well, if not better than CHK, with better terms for the landowner. If you are not tight for cash, your best plan is hold out until later in the year or even until next Spring.
Permalink Reply by Jim Harber on August 13, 2011 at 3:42pm

FYI, I was told last week that CHK was doing a signing in Hopedale, offering $4,350. bonus a acre and 20.50% royalty. I haven't had time to verify it yet, if true it is a pretty bold move on CHK's part.

Maybe with all the other companies on the ground in about 9 counties, maybe the Big Dog feels the need to reach out and touch someone?

Permalink Reply by AT on August 13, 2011 at 3:57pm
Let's hope it's true!
Permalink Reply by scott jackovitch on August 14, 2011 at 2:06am
keep us posted Jim.

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