We have been approached to purchase our OGM, with what it seems to be decent offer. Please advice other amounts people have been offered and/or accepted? We are located in Tioga County, PA.
We mostly likely will not sell the OGM, we are young and can wait for the potential royalties. Thanks!
Just a quick note to point out to folks that the idea of the "bulls eyes" all being along an anticline is complete fantasy. The locations of all the significant anticlines have been known for close to a century, and if getting a good well was that easy there would be no need to do seismic!
There are things one looks for in seismic, but it tends to be faulting (which you try to avoid) not the well-established anticlines. Seismic just isn't that useful a tool in horizontal drilling otherwise.
I have a question what makes you an expert in this area?
Not trying to insult you at all just trying to understand.
35+ years of industry experience in legal, leasing, LNG, marketing and drilling conventional wells in PA and NY, collecting royalties from 1,000+ additional wells, owning 250,000 acres of OGM interests in 20+ counties in PA and NY.. just stuff like that. :) I try to keep the discussions here focused on reality, even when that's not what people want to hear. And I learn things myself from time to time as well, so I hope it's a fair trade.
Where in Tioga county are you ? I am in Liberty township and have been hearing several people are being approached about pipelines and also being put in well units. I would not sell any OGM's right now, especially if you have patience and time on your side. Theresa
I would not say that Shell loves Tioga. It is more like they have made an investment in Tioga (when they purchased the rights from ERI. They have made efforts to test other formations but in the current market no one loves Tioga or any other Marcellus/Utica region. They are operating solely to stay afloat and be in position to have infrastructure in place and leasehold under control when/if exports are approved. Until that time nothing is going to change for anyone. ie (Royalty owner, operator or anyone looking to buy or lease into this play). Shell has the back end to do exploratory wells like they have done. That is certainly god for Tioga Landowners but they like any other company trying to tread water and not take on huge losses in this environment are cutting back and will be operating at a minimum. If I was a royalty owner I would be applauding that approach. No one wants a royalty check based off these market conditions.
There have been numerous comments made on this thread. Everyone wants to know "the latest", and many have theories on where Marcellus and Utica shales will take this region. I'm putting in a plug here for Penn State's upcoming meeting (AUGUST 19th from 2 - 4PM) in Coudersport, Potter County ... just west of Tioga. The presentation is being conducted by Dan Brockett, a member of the Marcellus Education Team. The title "SHALE GAS: Updates, Land Management and Lease Options". It will include the following agenda: Shale Overview, Trends, and Production Options When Under a Lease, and Land Management During Development. A question and Answer Period will follow. It's FREE, but registration is necessary to ensure ample seating.
Call 570. 320. 4429 or email http://extension.psu.edu/natural-gas/events if you want a seat. This is the way to get your questions answered face-to-face with professionals. Questions will also be answered by Bud Shuffstall, Sr. Vice-President, Oil, Gas and Mineral Officer @ Northwest Savings Bank.
Citizens have seen periods of growth, setbacks, and stagnation in our shale plays. That will not stop. Its what makes our continuing education doubly important.
5 yr/ $2Kper acre + 5yr extension for $2500. Be careful though, there is much more to your contract than $$$$ up front. The latest lease offers have had a boatload of deductions, along with tricky wording that could cost you down the road. Have a lawyer or someone knowledgeable in O&G leaes advise you.
Josie, please take note of the $$$ amts. I quoted on Aug. 3rd. Those are actual boots to the ground #'s folks have been offered by buyers. Companies who are unwilling to raise their production numbers currently due to market prices, know the day is coming when they wish they had more acreage corralled. The public hears deflated market, making some willing to sell thinking it's the best they can do. Hence BUYING prices are low.
What are your thoughts?