I know there's leasing going on in Pleasants County. Can anybody share what they're being offered? It seems like bonuses and royalties should be pretty high, as there should be some Utica Shale development going on. Also, I've heard that there's another shale called the Upper Devonian. If anybody has information about that, I'd appreciate knowing about it.
Are you with 5 Star landowners group? They are currently negotiating a lease with Antero for the Marcellus layer only @ 4K per acre + 20% royalty. It's a block of well over 10K acres of land, which makes it more desirable. Based on what I've seen offered in nearby areas that seems like a fair offer.
I'm not with 5 Star. I'm a solo attorney, and I review leases for mineral owners on a regular basis. I like to keep up with the latest prices as best I can. Thanks for the info. Someone else I talked with last week mentioned the $4K/acre + 20% royalty numbers. I suspect they were talking about 5 Star. I haven't heard those numbers anywhere else in WV recently.
5 Star sounds like an excellent project. I may have to try to put something like that together elsewhere.
I have 68 acres out in the Bull Creek area of Pleasants County, close to Ritchie and wood County. I have been wondering about the directional drilling companies coming into the area and leasing land. I have a total of seven vertical wells on the property. 3 old shallow wells, 2 deeper from the 80's, and 2 in the last few years. All produce some oil every year. the 2 newer ones produce both oil and gas and are hooked up to commercial gas lines.
My question is about the existence of these current wells. Does this play any factor in leasing land for directional drilling?
If your land is currently producing oil or gas, it's held by production (HBP in the oil patch). They won't have to come asking for another lease. However, the lease that covers your land appears to be an old one, and the old leases didn't allow for pooling with other property. In order to drill a horizontal well, they will need to pool you. So they'll come asking for a Ratification, Amendment, Modification, or something similarly named. If you are a good wheeler-dealer, you might be able to get a bonus and change the royalty amount. You might even be able to get some terms changed, particularly where it comes to use of the surface. Best of luck to you.
Kyle Nuttall
I know there's leasing going on in Pleasants County. Can anybody share what they're being offered? It seems like bonuses and royalties should be pretty high, as there should be some Utica Shale development going on. Also, I've heard that there's another shale called the Upper Devonian. If anybody has information about that, I'd appreciate knowing about it.
Nov 2, 2012
Michael Bonner
Nov 4, 2012
Kyle Nuttall
I'm not with 5 Star. I'm a solo attorney, and I review leases for mineral owners on a regular basis. I like to keep up with the latest prices as best I can. Thanks for the info. Someone else I talked with last week mentioned the $4K/acre + 20% royalty numbers. I suspect they were talking about 5 Star. I haven't heard those numbers anywhere else in WV recently.
5 Star sounds like an excellent project. I may have to try to put something like that together elsewhere.
Nov 5, 2012
Michael
I have 68 acres out in the Bull Creek area of Pleasants County, close to Ritchie and wood County. I have been wondering about the directional drilling companies coming into the area and leasing land. I have a total of seven vertical wells on the property. 3 old shallow wells, 2 deeper from the 80's, and 2 in the last few years. All produce some oil every year. the 2 newer ones produce both oil and gas and are hooked up to commercial gas lines.
My question is about the existence of these current wells. Does this play any factor in leasing land for directional drilling?
Jan 16, 2013
Kyle Nuttall
If your land is currently producing oil or gas, it's held by production (HBP in the oil patch). They won't have to come asking for another lease. However, the lease that covers your land appears to be an old one, and the old leases didn't allow for pooling with other property. In order to drill a horizontal well, they will need to pool you. So they'll come asking for a Ratification, Amendment, Modification, or something similarly named. If you are a good wheeler-dealer, you might be able to get a bonus and change the royalty amount. You might even be able to get some terms changed, particularly where it comes to use of the surface. Best of luck to you.
Jan 21, 2013