n July 23, 2014 at 11:11pm
"I've seen this seismic contract/option to lease. Artex isn't stupid. They're not going to pay for a lease if the seismic shows a property isn't promising. They also want to get the data and then avoid going through negotiations because, as is obvious, if they shoot seismic then try to lease you it means they found something and the landowner has immediate leverage. They're looking to avoid that entirely. They're also trying to keep any competition far, far away, by getting people locked down before word of good seismic data can spread. It's a really good strategy for them. Not so much for the landowner. I'd tell them they can shoot all the seismic they want but the lease has to be a separate negotiation. That way you get a lease only if your land shows what they are hoping it shows, which is exactly where you'd be if you signed the seismic/lease option, only in this scenario you have a little bargaining power."
I know one of the landowners with a permitted Artex well. He has a Clinton well but his lease only covered from the surface to the base of the Clinton. Knox had to come to him in August 2014(after the shoot) and lease from the Clinton down. I hope he got PAID!!!! Thanks Dexter, hopefully other will follow your advice. Too late for me..... they got me from the surface to China. Btw, he also separated his Utica/Pp in August 2014. I guess you do that when you have a permitted Utica/Pp bordering your property.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]