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Comment by Jim Litwinowicz on July 4, 2013 at 1:02pm

Oh man that is a tough one.  I am not privy to any negotiations so I don't know what is going on. (I'm not even a Cx employee) Plus it is already late in the year, many of these companies have budgets tha run out as the year progresses.  On the other hand, they have been doing very little leasing up to now so they should have the financing to do a deal. And one thing I have learned in the last five years is that things are pretty unpredictable.

But I do know there is some serious interest from several companies. If these test wells and the core samples look good, we may  see something in the next couple of months. But what are the odds?  I don't really know. I'll say 60/40 but don't know which way the ratio is.  Is that a vague enough answer?

Comment by rex roae on July 4, 2013 at 12:55pm

Jim, if you were a betting man, what odds would you give that CX would get a legitimate offer for Crawford this year?

Comment by Jim Litwinowicz on July 4, 2013 at 12:49pm

Rex; thats what I mean, they upped their offers right drilling the well.... a very good sign IMO. With all these companies now nearing completion of several test wells for each company, there should be some serious action soon. And getting all the gathering line ROWs will also help a lot.

Comment by rex roae on July 4, 2013 at 12:42pm

Jim, the offer from Range was prorated over 5 years.   I heard some of range's leases had the 1st payment after the first year but ours had the 1st payment within 60 business days of signing the lease.

An interesting fact.  Range had been offering $2,000/acre last year and I was told by their landman that was likely the highest they were going.  1 week later and shortly after they had drilled the Lippert well, they upped the offer to $3,750.

I've also heard some conflicting info recently.  Someone at Range I stay in contact with has told me they are very pleased with the Lippert results after the well was re-fracked.  On the other hand, I've been told Range has no current plans to lease in Crawford and instead is concentrating on Venango.   I've been hearing this for a couple months now but if anyone is being leased by Range in Venango right now, I haven't heard about it.

Comment by Jim Litwinowicz on July 4, 2013 at 12:08pm

As for the talk of an offer for Mercer Co, I know there are at least five companies that they are talking to  One appears to be very serious but I do not know who any of these are. But look for news in the next few weeks, hopefully.

Jim Dickinson; Hopefully enough people will contact the Gov's office to stop him from signing.  Even if he does I would expect some lawsuits as it doesn't seem right that they can pass a law that changes the meaning of contracts signed years or decades ago. Shouldn't be allowed to retroactively affect existing contracts.

Comment by Jim Litwinowicz on July 4, 2013 at 12:04pm

Rex Roa;  was that offer for a paid up leae or for payment over five years? Range was offering leases with delay rental payments.  What is interesting they upped that offer from previous offers after they drilled a couple of wells so they must have liked what they found. It is very common for the first couple of wells in an area to be poor producers as each area takes its on unique completion methods. What is more important than first production is what the core samples and other tests show.  There is no doubt here is dry gas. The question is how much wet gas is present.  And since the Medina is such a good producer, there is a very good possibility of doing horizontals in that and other strata. Both Shell and Rex are drilling into three different strata in Butler and Lawrence Counties. And be sure they are core sampling all these layers as they drill.

Comment by Jim Dickinson on July 4, 2013 at 11:01am

This must have some impact on leasing:
HARRISBURG — A bill allowing drilling companies to pool land from some landowners into gas-drilling units is on its way to Gov. Tom Corbett after Senate approval.
The bill was approved 48-2 on Sunday with no debate.
The legislation could impact shale drilling operations in Western Pennsylvania, where many people signed oil and gas contracts years before shale drilling became a major industry.
“A requirement of the bill is that all the units must be under lease,” said Drew Crompton, chief counsel for Senate President Pro Tempore Joe Scarnati, R-Jefferson County. “No one is forced. Each (owner) has agreed to lease for gas drilling.”
But the bill will affect people who have not necessarily agreed to lease their land for modern shale drilling.
Experts have said it's likely to affect old contracts that don't mention whether drillers can combine their leases into the large pools that cover several parcels of land, common in today's drilling.
If it passes, it will give the drilling companies the right to pool leases as long as their contracts don't specifically prohibit it, which older contracts typically don't, experts have said.
That creates a problem for the landowners by undercutting the leverage they would otherwise have to renegotiate old contracts, legal experts and landowners' advocates said recently. Drillers want to put those leases into larger pools so they can access more land from one well, and when old contracts don't permit that, the landowners could ask for larger payments or other benefits in exchange for allowing it, they said.
“This is the paradigm shift in politics, the point in time we can look back to where PA gas law began to prey upon the people rather than protect,” Trevor Walczak, vice president of the Pennsylvania chapter of the National Association of Royalty Owners, wrote in an email.
“The lawmakers have blatantly over-reached ignoring the need for checks & balances,” Walczak wrote. “Unfortunately, this is just a taste of what is to come. The rules need to catch up (to) the technology, but the rules need to be drafted by the people.”
The provision allowing drilling companies to pool the land was amended into the bill and approved by the House early Saturday before it was fast-tracked for a vote in the Senate.


Read more: http://triblive.com/news/adminpage/4285763-74/drilling-bill-contrac...
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Comment by j. rick on July 4, 2013 at 10:12am

that's good news for the area and the folks that were left out. wonder if the company is EQT ?? or  shell ?

Comment by Berk on July 4, 2013 at 9:11am

James,

Try this link http://cx-energy.com/assets/Special-Mercer-County-Update.pdf

Comment by james on July 4, 2013 at 8:53am

Where did you read that at Berk? We own over 1000 acres unleased in Sandy Lake area would be interested in leasing, not sure I want to go through CX though??

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