Replies to This Discussion

Permalink Reply by Tom Frey on October 31, 2011 at 11:26pm

What are they offering do you know?

Permalink Reply by Jab on November 1, 2011 at 5:14am

What part of trumbull are you in?

Permalink Reply by Tom Frey on November 1, 2011 at 6:07am

Braceville township by Newton Falls

 

Permalink Reply by Tanya Gabriele on November 1, 2011 at 6:19pm

Careful boys.  What's that mean:  "PAC brokers the Utica"  and "PAC [gives or matches] top dollar for your lease per acre?"  What type of reassignment clause does PAC offer?  

 

Permalink Reply by Adam Thomas on November 2, 2011 at 4:05pm

JAB,  I would be VERY careful with that.  I don't know about this particular company but there are alot of shallow well producers that are trying to convince people this is a great thing because they do not have the money or technology to go after the deep stuff.  Virtually all the reputable companies that are after the deep rights are willing to work with these companies because they put a shallow well on the property and hold it by production and then the big companies can drill when the time is right for them, not you.

Many shallow well producers are experiencing the"Walmart" effect as I call it.  The price of natural gas is half what it was a few years ago because of the market being flooded with the dry natural gas produced in Pa and WV over the last few years in the marcellous.  Since the very small amounts(compared to horizontal deep wells) of gas that the shallow wells produce is de-valued so much, they have to come up with ways of securing their own futures.  The big companies are squeezing them out in a huge way (similar to the small stores that Walmart squeezes out when they enter a new area). 

 

Be careful that you do not allow your pennies to control your dollars!  It only makes sense.  The shallow well producers are trying to find a way to survive and many will try virtually anything as they are desperate and see the future is not in their favor.