Recent leasing activity?

What is the current leasing status in the NW PA/SW NY areas? With many companies rescinding offers is there anyone active out there leasing? If so, what is being offered?

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Permalink Reply by Brian on July 20, 2009 at 1:47am
A guy me called me and made me the offer on the phone.
Permalink Reply by roy jones on July 20, 2009 at 2:38pm
How much was their offer per acre Brian/James?
Permalink Reply by Pam Larcom on July 23, 2009 at 5:56am
I received an offer for $1000 per acre and 12% royalty, $500 per acre and 15%, or no bonus and 18% royalty. I only have 2 acres. All for a 5 year lease. I was offered this on the phone today. I have not agreed to anything yet. Which is the best choice? This offer was from Chesapeake.
Permalink Reply by Mmmarkkk on July 23, 2009 at 7:19am
Pam: see my reply on page 2. I've given you some numbers to think about. It really comes down to money now versus more money later. But I think you can do a bit better. Maybe $1000/acre for 15%.
Permalink Reply by Ringo Star on July 23, 2009 at 7:43am
How do you know if Pam can do better? She didnt say where the property is. Have there been any Successful wells near her?
Permalink Reply by roy jones on July 23, 2009 at 8:46am
Ringo is correct. Often times landowners miss the boat because they hear a guy in the next county is getting 1500 an acre, so why shouldnt you get 1500 as well? This shale, like every other shale, is very variable in terms of how much gas is in place. You need to know which areas are good and which arent. Until then, you cant say I think you can do better. People thought they could do better by holding out from their $3000 per acre offer last summer. now gas prices have plummeted and turns out their area isnt good. Now some of these people are lucky to get $50 an acre. Serves them right. And people complain about the oil companies being greedy. Unbelievable. Get to know the area, then decide.
Permalink Reply by roy jones on July 23, 2009 at 10:48am
Not hard to believe. Tioga County. Potter County. Western part of Central PA. These landowners cant give away their land - although they still expect getting $1000 an acre or more for their unproven land. Companies are pretty topheavy with acreage seeing as their drilling budgets were cut, and arent willing to spend any money in unproven areas anymore like they were last summer (hence the 3000 an acre). I work with some companies as a consultant - they aren't taking any acreage unless its around proven wells, or is ridiculously cheap in unproven areas. These greedy landowners missed the big payday until everything rebounds in a few years.
Permalink Reply by roy jones on July 24, 2009 at 4:47am
Oh, I dont work for any single energy company, so it doesnt matter much what I say, I'm not representing anybody but myself (as a landowner in PA too). Anyways, what area are you in?
Permalink Reply by roy jones on July 24, 2009 at 6:13am
No offers, really? I see that Range is right by Cross, Creek... Drilling, or at least permitted, those Lehman units... 6 horizontals on a pad. Im surprised you havent gotten a decent offer yet. What have you been offered? I would expect something like 750 an acre in that area.
Permalink Reply by roy jones on July 24, 2009 at 7:01am
hmmm... how many acres do you have? A 5 year lease is a pretty long lease... I was thinkin 750 for a 3 year lease, which is a little bit more than your 1k for 5 years.. 17% though, thats great.

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