Westmoreland County, PA
All things pertaining to leasing, drilling and production in Westmoreland County.
New offer from Franklin Township, Westmoreland County
Our family was contacted by Dorso Energy last week regarding 111 acres my father in law still had the mineral rights on in Franklin Township, Westmoreland. Anyone know anything about Dorso? The paperwork is supposed to arrive tomorrow, but if I understood him correctly, the offer was $1000 per acre bonus, 12.5% royalty and not sure about the lease term. I've been researching a lot on this forum and other sights so I've gotten a lot of education this past week so I know this is probably a ridiculously low intro offer. Any thoughts? I'm guessing our next step is to contact an oil & gas attorney and figure out what the property might even be worth and if any drills are nearby? We live in Florida so this is a little difficult to do long distance. I'm not trying to be greedy, but don't want to be taken advantage of either. There is no other family involved and we don't know any of the other parties or where we are within the unit. Not really sure at this point where we begin???!! Thanks for any help
Stacy
Mike Sero
Personally I wouldn't lease for that amount. I'm currently leasing in Western Westmoreland for EQT starting at 3000 and 15%.
Allegheny township specifically. We are leasing in other townships also - more information let me know.
Jun 24, 2014
sldouglass
Dorso is a historic operator in the area and may only want the shallow stuff for its operations. If so, the terms are not unusual. If the lease includes all the strata including the various strata like the Marcellus and Utica that are produced by so called "unconventional drilling" then the offer is inadequate.
Possibly Dorsois collecting leases to sell to a big operator that can afford to spend the many millions for the more involved horizontal drilling. There may be no reason to expect serious drilling at this time - particularly if there is no "wet" gas or oil. In fertile areas for unconventional drilling 20% and $5000/acre - possibly more - could be the right amounts.
It does not sound like something you would want to rush into.
Jun 27, 2014
Gas Boy
DorSo is working with APEX Energy in Penn Twp., Westmoreland Co. Huntley & Huntley's acreage is primarily in Franklin Twp. If DorSo is leasing in Franklin Twp., then they're probably going to try and flip the acreage to H&H. Best to work directly with the "Big Dog".
Jul 22, 2014