Shell reps has just come through to get permission for seismic testing. I'm not leased (total surprise to them...I guess landowners aren't the only ones kept in the dark!), so I said no. I said I would be interested in leasing, and they said Shell would get back to me soon.

Does anyone know Shell's current standard offer? The last I heard (late last year) it was $2000/acre, 15% royalty. And they have addendums for C&G rollbacks, no storage, and some other environmental ones. I want to be prepared when they call to get the best deal. I'd like to hold out for a higher royalty; I know that Shell has bought/taken over leases with royalties as high as 20%. As I've written before, I'm in a pretty good position where it would be difficult for Shell to totally ignore my property. I want a deal, but I want better than their standard offer: now is my chance. Any ideas?

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 Shell is the only company in our area and the largest oil company in Europe so I think they are gonna be here for the long haul,the big fish are swallowing up the small ones,I wouldn't piss them off show respect and they will return that to you,unless you don"t want the money.
I always show respect to everyone. I was respectful to the 2 East landmen I dealt with, but it didn't get me any better offer ($1500/15%, 2 years ago). What I need to know is what is reasonable to ask for.

Consider that it  wasn't necessarily the truth that the siesmic landman didn't know you aren't leased.  I was told that my property was down on East's records as having been leased.  Iirc, it was the next day that a leasing landman from Long/East came calling ... for the first time.

 

Not saying you shouldn't ask for a higher royalty, but gascos do have a history of being more generous with each other than they are with individual landowners.

 

Good luck to you!!! 

 TESTING 1,2,3-TESTING 1,2,3 IS THIS THING ON, SHELL BOUGHT EAST OVER A YEAR AGO. 
We are speaking past tense...the gentlemen I dealt with were working for East...I assume Ann's story also involved East, not Shell. There doesn't seem to be a big difference, though, in the way they deal with landowners.

East. Shell. Same thing. For what it's worth it's still Long Consulting doing the lease, seismic and title ground work for Shell. 

It seems to be a cozy arrangement. The men who stopped by said they were from Shell, and the paper they wanted me to sign had SWEPI LP at the top and Long Consulting Group at the bottom. I don't know if they were from Shell or Long (or if it matters).
Bummer.  This is one time I wish a landman hadn't been telling the truth.

"

 

Yelling" (all caps) isn't very respectful.  If you meant to restrict your advice to "show respect" to dealings with powerful multinational corporations, a more accurate description of that behavior would be "sucking up". 

 

Yes the deal between ERI and Shell was made over a year ago.  But control wasn't transferred until July 2010, at which point Shell changed the name to East Resources Management (ERM).   A lease I was offered by a Long landman in August 2010 was in the name of East Resources Management.  Don't know that it was true, but the Long landman said that Shell was contractually obligated to continue to use Long's services for two years.

ERM was merged into SWEPI effective Jan. 1
 I think when Shell is done with this 3-D seismic and they design a drilling plan for the best possible area's to drill northern Tioga is gonna have some record producing wells.
I suspect (but have no proof) that the wells in central Tioga Co. are looking very promising. They aren't on line yet, so Shell doesn't have to share any numbers. Shell is getting rid of their leases in SE Tioga Co. to concentrate on Central (and Northern?) Tioga...I think they know something they aren't telling anyone else about.

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