Comment

Comment by PennCrude/NatGas Go! on December 10, 2012 at 12:05pm

"Suggests below that maybe you should call a company and say will you please lease my property".
"I do not recommend that."

I didn't sat would you please lease my property. What I said is whomever you contact. If it would be Range, Atlas or whomever. All the individual who is inquiring about possibly leasing land to a natural gas company would have to do is take some initiative ans ask some questions. Gathering their results that they find out from companies and choose what is best for their specific wants. Sometimes you don't necessarily get what you want in a lease agreement. Read the fine print, of course the individual can holdout and wait it out. Although that could be a risk in the long run, but you and I as a landowners have that option.

Comment by sldouglass on December 10, 2012 at 5:36am

 Ryan Joseph Eldred  suggests below that maybe you should call a company and say will you please lease my property.

I do not recommend that.

Almost every property is critical to the drilling patterns of the producer, who will call.  But producers are spending their money in Ohio right now.  They will be back.

Range already has a lot of property and where it has control, one cannot expect others to come in.  Range or some friend of Range will be trying to lease in areas where its current holdings discourage others - but someday it will need your property.

Comment by sldouglass on December 9, 2012 at 1:55pm

The industry will create a "sense" of urgency but
I respectfully suggest that it is only urgent when your property becomes urgently needed by some producer. And that will happen in 99% of the cases.
At that time you might want to tell the prospective lessee that you will think about it if you get the right terms.
Of course, if the cash from a possible bonus is important to an individual owner, no one can fault him or her for making the best deal possible under the circumstances.
NWPA Landowners group has had reps at one of the described meetings and has worked with some of the feedback. Attention and company budgets go where the producers think the best reserves will be found. Right now most of available budgets are being spent on the Ohio Utica and the billions of dollars infrastructure money is being built to the South.

Comment by Janice L. Hancharick on December 9, 2012 at 1:39pm

 Bob, There is a sense of urgency emerging re: signing on  with a large group. The N.A.P.E. (North American Petroleum Exposition) event (February 2013) in Houston is on the calendar for CX representatives.  It's a major happening for buyers, sellers, those wanting to lease in the unconventional shale plays throughout the U.S. and Canada.  This is premium exposure for groups that have grown large enough to attract the attention we all want to achieve group goals.

If folks are doing their homework, they'll learn which groups are represented by major players experienced making big energy deals happen long  there was a Marcellus.  Check out what firms representing Marcellus groups will be in Houston.

Comment by PennCrude/NatGas Go! on December 9, 2012 at 1:18pm

As for Range Resources monopolizing and making landowners who are not affiliated with them poorer? Don't believe that's the cases at all. The one well on our property is in a unit. They drilled the well because it was within the same block as the others previously drilled. Dates I do not have off hand. Why would a well established drilling/gas producing company render landowners not leased with them poor? Primarily it comes down to location, location, location. Have a plot of land under 2 acres. May not necessarily decided to drill on your land. Regardless of the company, whether it is Range, Atlas, whomever. They in turn may have decided that it wouldn't be economically feasible to establish a location due to the ever growing costs of permitting, setting up location from clearing the land to setting up drilling rig. To finally set up the separation equipment and tank. The costs of drilling are only going up. As is everything these days. With government trying to make it nearly impossible to drill. Most companies will be very decisive where they will drill. Which in turn gives credit to my previous statement. Geology is very important. All you have to do is research and find out a few things with your land. Do I have enough acreage? Are there any other wells in my area that are in a unit? What company is the one that is doing the most production around me? Find those things out and contact their offices. Somebody should be able to steer you in the right direction as to what the next steps would be. Most of these companies have great information for many questions that landowners have. Be sure to check on sites like Pioga, Northwest Pa. Marcellus showcase and others. Usually have information about upcoming events for landowners to better prepare them for anything that will be occurring in your area. Better known as town hall meetings. Very beneficial to anyone that has an interest about oil&gas industry, or who has an interest in leasing land to have a company drill on their property. Representatives usually are there to give advice or start the first steps by taking your information and contact number. Sometimes all you have yo do is ask. Friend of mine sent an inquiry about drilling on his property. In less than 7 months they begun to start clearing land for a gaswell. May be wondering? Why hasn't anyone contacted me? That is why you should just make a phone call and ask.

Comment by PennCrude/NatGas Go! on December 9, 2012 at 12:29pm

Bob,

Geological department for any natural gas exploration company is a very important and crucial functioning part of making sure exactly where the best location above and below ground to drill a producing well. Whether it be natural gas or oil. If anyone has read on the history of Pithole, Pennsylvania, where there was a massive drilling for oil shortly after Col. Drake's well was successful. The area was rich and did produce. The problem there was that they wouldn't get desirable amounts from one well and just move 10-30' from the previous spot and try again. Although this process is still used today on multiple pad well sites. The results at Pithole ended up in abandoning the entire field for the most part. Majority of the wells were entirely too close and many communicated with each other with undesirable outcomes. Very interesting to visit that area and see some of the casings and equipment that still scatter the areas of Pithole. Just think of what the results would of been if they would have had the technology and a well established geology department, drilling team. Results would've been astronomically different. Very much so that some may still be in production to this day, with the proper care and preventive measures taken. Area may have still been good to explore drilling wise. My personal opinion I believe it would be for Pennsylvania crude oil. But whomever was to begin the task. Would be a lot of cleaning up to do and mapping out, finding what's lying around by the geology people. In closing yes, absolutely Geology is King. Without them and the teams that work with them directly. We would be experiencing Pitholes all over the country.

Comment by Bob Jenness on December 9, 2012 at 4:13am

Sam Orr...

You posted "Contiguous properties that can be combined into a drilling unit of between 640 and 1280 acres are valuable. Five acres surrounded by properties held by production are likely not to be so valuable. A problem in at least part of Crawford County is that Range Resources holds thousands of acres."  

I've read in this forum that negotiating business solutions to this gerrymandering is just a normal part of a real driller's business.  Has Range found some way to achieve more monopoly power from their holdings and thus render unleased landowners poorer?  I know that if I and my neighbors could put together a drillable unit, we'd lease quicker, but I was hoping that a group deal (CX, NWPA, Billik, etc.) would achieve most of this advantage by weight of numbers.  If this market is so fragmented that all real drillers are now small operators, perhaps the groups would be better off to contract their drilling out to the same subs the current drillers are using.  Or perhaps we need a group dedicated to "harvesting" the undrilled land surrounding the many old vertical wells that unjustly HBP so many acres.  I know of one leased landowner that's working on such a deal with his old Atlas/Chevron wells, and I've heard someone at an energy partner who expects a lot of that to happen.

If "geology is king", then the only difference in value of 5 acres vs 600 should 5/600 total value.

Comment by Bob Jenness on December 9, 2012 at 3:56am

Sam Douglass, Thanks once again for your wisdom!

If everyone who reads this forum reads and understands the advice you posted, I would estimate that it could be worth thousands or millions of dollars to the landowner community.  I am once again affirmed in my choice of NWPALG, and I look forward with hope for a lease offer in the not too distant future.

Comment by sldouglass on December 8, 2012 at 1:17pm

Rex
You may know more than you think
And those other folks may know less than you think.
Sometimes it is enough to know that you have something the other guy wants
And there are various groups
I am committed to NWPA Landowners group. Their people are pretty much like you. And from all I can tell they are doing their homework.
However, if you decide to go it alone help is available.
dates in 2013 mayor may or may not be relevant.
When some one finally makes an offer that seems right to you, that is relevant.

Comment by Douglas W on December 8, 2012 at 12:52am

Halcon is a flipper of themselves. http://www.cnbc.com/id/48491477/Halcon_CEO_Plans_to_Sell_Company_in....

Since the CEO plans to sell within 3 years like he did  with Petrohawk perhaps they'll be more rapidly forthcoming on results from the wells in the SE portion of Crawford County to expedite a sale.

Does CX allow you to see the map before you sign? If not, what good does it do to sign blindly into an organization which needs to build blocks only to find out you were better off signing with someone else to create a block you must be in?

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