Replies to This Discussion

Permalink Reply by Lance Nimmo on May 14, 2012 at 8:03am

I don't know what constitutes hot, but I'd say Mercer County is luke warm. Sure they are leasing some areas, but there is only one pad permitted so far in the county. That's not to say things can't pick up steam quickly...

Permalink Reply by petej on May 14, 2012 at 3:31pm

Perhaps "very" hot a bit of a stretch.

Consider that we are the next county in the supposed Utica Wet Gas window when moving from SE Ohio up into NW PA. SW Mercer county and Trumble county OH have had some large acre signings in the past what - 6 months?

Also, when looking at the Ohio wells and permitts map (please correct me if I am wrong), the bulk of the activity is in the wet gas window. Not in the oil or dry gas areas. The same holds true when looking at the activity in the Eagle Ford play in TX.

Many of the best monitary lease offers (info posted on gms for bonus and royalties by county in OH) have been in the wet gas or wet gas and just into the oil window. Go further into the oil and the $ actually went down. I can not tell you if these leases were landowner friendly as that info was not provided.

As for the BP - Trumble county offer -$3900/acre bonus and 17.5% - I'm still following that one. Many posted that the 17.5% was net not gross. From a post of what I believe to be from that lease I would agree that they were offered net. Shouldn't we be looking for gross or no deductions? I encourage those in Mercer county to review the Trumble county discussions. That group had 80,000+ acers. HUGE!  I would like to think that our group with ~ 27,000 acres in northern and eastern Mercer county would be in a much stronger position. Could Trumble have set the floor?

I should close with the fact that we are looking for a landowner friendly lease as we intend on spending the rest of or lives here. If the monitary terms are great but the rest of the lease is not acceptable, we will not sign. Most of what I have pointed out here is based on $. Don't want anyone to sell out to short.  Just trying to share and start a discussion for Mercer county. So much more to cover.

Welcome any thoughts and information.

With the cx offer so close I guess we shall see how "hot" we are.

Thanks

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 11:14am

Mercer is hot.  We are working on an offer that will exceed what landowners signed for in both Lawrence Co and western Mercer Co. Should have a deal wrapped up soon...a few weeks.

The current fee is 6% of the bonus, no royalty percentage. If you want in email me at landownerslease@hotmail.com  If you wait until after a deal is announced the fee will be 8%, which could be a substantial difference for larger landowners.

Permalink Reply by Mike C. on May 14, 2012 at 11:23am

When I attended your meeting three weeks ago the presenter said that there were multiple deals on the table and that a deal could be struck within one to two weeks so we needed to act quickly.  This sounds very similar to that pitch.

 

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 11:24am

Don't sign up then.

Permalink Reply by Mike C. on May 14, 2012 at 11:31am

I am not trying to rock the boat.  I see the value of groups.  The problem here is that your group is trying to acquire acreage all over the county.  What O&G is going to want a bunch of scattered acreage?  Plus at 6% and 20,000+ acres the minimum that CX will take home will be in the 4plus million range.  That seems like highway robbery.  If that type of commission can be explained to me in a way that makes sense I would love to hear it.  If the benefit is truly for the landowner shouldn't that commission be capped and the rest donated back to the county?

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 11:45am

We have a long history of getting landowners the best deal. If you are more concerned with what other people make than what you will make and do not want to pay the fee to get a better deal than you would otherwise get, then so be it.

Permalink Reply by Mike C. on May 14, 2012 at 11:51am

Again no answers, just statements.

 

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 11:54am

You are part of Obama's "Wealth Envy" crowd.  You are more concerned with what other people make rather than the value you get. You are jealous when people "make money off of me" instead of looking at how much more you will get from the deal than you would other wise. Not much I can do about that.

Permalink Reply by Mike C. on May 14, 2012 at 12:03pm

Again no answers only statements with name calling to boot, thank you for helping confirm that I want no part of this group.

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 12:07pm

We've been round and round before.  Why go through it again?

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 12:43pm

Lets say you have a house to sell and it is worth $150,000. You don't want to pay a realtor a commission of 6% so you stick a sign in the front yard to sell it yourself. After a few weeks, you have a couple of offers for $145,000 and one for $150,000. 

A guy from Texas shows up and says that his boss, an oil tycoon, loves the house and will pay $200,000 for it.  But as he wants a commission of 10% to do the deal. You immediately figure that his commission of $20,000 dollars for a few hours work is "highway robbery" and you throw him out, ignoring that you could have made $30,000 more.

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