Comment

Comment by Berk on August 21, 2012 at 3:14pm

Things are happening all around me. Range surveying land right up to my east boundary line getting ready for the announced Greenwood twp's first well. Just south of me in Mercer county Lake Rd runs to Sheakleyville, Pa on hwy 19; lines (looks like electrical extension cords) running for miles. I assume this is seismic testing going on.  

Berk 

Comment by Jim Litwinowicz on August 20, 2012 at 5:00am

Sam; you keep talking about getting advanced royalties in leases. Has anyone ever gotten such advanced leases? If so, what type of advances are they getting? Say a lease is a paid-up lease for $3000 for five years and a 17% royalty. What can one expect to get on 100 acres? Do the advanced royalties start after the first year or after the five years is up? Do these start only after a well is drilled, even a shallow well? If so, are these more like a minimum royalty? If not, then does getting advanced royalties hold a lease indefinitely? Have you approached any companies about this possibility? What has been their reaction?

Its nice to talk about such a concept but there a lot of details that people should ask about. Especially whether or not if there is a reasonable possibility of getting such a thing.

Comment by Sam Douglass on August 19, 2012 at 10:59am

On the 

Comment by Dave on August 8, 2012 at 4:14pm

Know that you do not have a deal when you sign up and the language Dave points out demonstrates that fact.  With a high degree of frequency, companies reject the initial deal, hoping you have spent all you want to spend on lawyers and such then they come back with a less attractive deal.  It is a game frequently played.  Get some non-refundable money for your time and trouble when you sign up.

Understandably the companies want the leases on the best terms they can get them - and they have been at this business of leasing a long time.  They know what works to achieve their objective.

Just because there is activity in Eastern Ohio does not mean the same kind of activity will happen immediately in Crawford and surrounding counties - for awhile.  They cannot be everywhere at once and do not want to be.

Comment by Sam Douglass on August 19, 2012 at 10:39am

Know that one well [or even a few here and there] does not make a drilling program.  It may even be a vertical exploratory well.  Millions of acres to drill to support future operation needs.  A  lot of drilling is just to extend the lease.

Comment by Sam Douglass on August 19, 2012 at 10:35am

James Partridge asks if Range is doing any new leasing in Crawford County. I am guessing that it is working with some of the other outfits in the area that are going around leasing.

x

Visiting at the drilling sites is interesting, but I would expect that the personnel there are instructed to tell you only what the company wants you to hear.

I am guessing you will not see an enormous amount of activity - maybe a well here and there to hold future reserves in units of 1280 acres that are likely to have space for 30 wells.  You may get the bonus in 90 days if they are in the mood to give it to you, but you could wait a very long time for production of any volume.  To spend maybe billions on infrastructure, the companies need to know they have reserves for at least 20 [maybe 100] years.  Better get a decent annual advance royalty if you expect predictable money over a term.

Comment by Bob Jenness on August 17, 2012 at 3:32pm

As to the possibility of talking to anyone working for Range, I stopped by the gate of the Cochranton well a while back, and their very impressive (but not too neighborly:-) 24/7 security force made it quite clear that no info will be shared under any circumstances.  I guess when you're offering leases at 15 cents on the estimated fair value dollar you buy whatever security it takes to stay below the radar:-)  I do hope that someone who has a view will post photos and video of the flare with enough equipment visible to calibrate the flame size when they start burning that nice landowner's free gas.  And in the interest of being a little nice to RRC, they treat their investors quite nicely and the investors seem to like those low lease rates - the stock's been doing quite well:-)

Comment by Berk on August 17, 2012 at 3:29pm

From what I can determine none of this land belongs to Kebert unless they go across powder road (the road they hauled the TNT to the bunkers). Do you remember a guy by the name of shorty coulter (died of cancer late 60's) he lived on the porter farm up a lane?    

Comment by Bob Jenness on August 17, 2012 at 3:23pm

Berk,

Thanks for the location fix.  That's the old Keystone Ordinance/PPG/Kebert Construction area, right?  Brings back a lot of memories - I learned to drive on the Georgetown (Lake) Road a few years before my learner's permit arrived from PA (a very long time ago, of course:-).  Is that land still owned in one block, or does it include any of the bunkers-converted-to-homes?  I guess a lot of the TNT dropped on Germany in WW2 was made there.  This is probably old news to all the Crawford County folks, but my grandsons find it pretty interesting.

Comment by Berk on August 17, 2012 at 11:33am

yes range is doing the greenwood well. Range land man was at my place a couple weeks ago but the money offered and contract wording was next to nothing.    

Comment by james on August 17, 2012 at 9:49am

Is range resources doing any new leasing in Crawford county? If they are what are they paying per acre bonus and what percentage? I know they are drilling in the cochranton area, are they the ones doing the work in greenwood area and conneautvIlle area?

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