Replies to This Discussion

Permalink Reply by JULIA SUDYLO on October 21, 2010 at 4:45pm

There are several Cheasepeak, Cabot, Southwestern etc. You would do best by reading back on the posts and getting an idea of what has been going on and you will get a better idea of who can be your best source of information. There are also many helpful links on those posts as well.

The most important thing is to try and join a group unless you are very well versed. Best of luck J.

Permalink Reply by Henry J. Cittone on December 28, 2010 at 12:25pm

Chesapeake is leasing in Auburn township.  Small acreage is harder to lease than larger parcels.  The only reason Chesapeake leased our 12 acres was because I had an offer from Southwestern on the table (for much much less than what Chesapeake offered and Chesapeake didn't want to have to deal with trading/consolidating islands of rights between the two companies).  My best recommendation is to get any offer from another company for anything, don't tell whoever the big leasor in your township is what the amount offered is (it might be as low as half the goign price) and go from there and try and get a real lease offer from Chesapeake/Cabot or whoever is surrounding you.  You can cause alot of headache by threatening to lease to another company.

 

The going rate is $5,500 per acre bonus and 20% royalties as far as I have seen so far in the news.  We got $5,250 per acre and 18% but that was in December of 2009.  One thing that helped with Chesapeake was agreeing to the same terms as the neighboring land owner group.  (We were not eligible to join Wyoming County Landowner Group because we were just over the county line....(don't get me started on that))

 

I agree with Julia, if you can join a group it's a lot better for a small parcel holder than goign thru what we went thru.  We had a rough time, there being no group for us and getting a couple low ball offers (which would most likely have been flipped to Chesapeake anyway).

 

Also if you do lease beware of getting random offers to buy your future royalties.  I ran the numbers off the data from neighboring wells and the royalty stream divided per acre is worth quite a bit, assuming a well in our area is (1) drilled (2) we get into the production unit and (3) it actually produces at the same rate as the ones down the road.

Permalink Reply by Henry J. Cittone on December 29, 2010 at 12:01pm

Sorry to double post, but I just foudn this map which could be useful to figure who is operating in your township:

 

http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid...