Lease offers picking up steam

It seems everyone I talk to that has 5+ acres has recieved a lease offer recent....especially on the South end of New Phila.

 

AIM, Sierra, and CHK  seem to be the most mentioned suitors.  Are all these companies

in competition....or just dividing up the territory?

 

There are 1000s of HBP acres in the area as well (no pun intended), So I suspect units are being organized and permits submitted (soon).

 

Where will the first well be drilled....and by Whom? 

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Replies to This Discussion

Permalink Reply by Brent Laner on May 30, 2011 at 10:49am
At the present time there are at least three players in the area. Chesapeake, who has been the most aggressive, currently offering land groups $2250/acre with 17.5% gross royalty, Gulfport who seems to be offering about the same, and Sierra Buckeye through Greenwood Energy at $1500 and 15% gross. All of these are 5 year leases. Greenwood's offer seems to be upfront to anyone, so one would expect better terms with larger acreage and land groups. One landowner group, Ohio Valley Landowners has a meeting this Wednesday at 6:30  PM at the Warren Twp Community Center (Old New Cumberland Elementary School). They are supposed to be discussing offers from Chesapeake and Gulfport. Everyone is welcome to attend this meeting.
Permalink Reply by Del Jones on June 9, 2011 at 8:29am

Hi All,

 

I am new to the group and have some questions about the acronyms being used.  What are AIM, CHK (I assume this is Chesapeak), and HBP?

Anyway, I received a lowball offer from Avalanche and a pretty good one from Greenwood.  I approached Chesapeak but haven't heard back from them.  Can a landowner with a small amount of land (I have 15 acres) expect to get the same deal mentioned above from Chesapeak.  I also enquired about joining the "Ohio Valley Landowners" group but have not heard back from them in quite a while.  I am assuming that my location does not fit in with their group since it has been 3 months with no reply.

Permalink Reply by Brent Laner on June 10, 2011 at 12:22am
AIM is a company, not sure what initials stand for, CHK is Chesapeake. HBP stands for held by production, meaning your property currently has a gas/oil well on it that is producing and you are receiving a royalty payment from it. I would contact the Ohio Valley Landowners group asap! They have an offer on the table and will be moving forward with it very soon. They have meeting scheduled for today at 3:30 and 6:30 at the Carrollton Days Inn. If you could make either one of these it would be very beneficial for you.
Permalink Reply by Del Jones on June 10, 2011 at 4:45am

Thanks, Brent.

 

I contacted the OVL group and will probably join it.  I'm in NC so won't be at the meeting.  The offer I received from Greenwood was for $2000/acre bonus and 15% net (not gross) royalty.  Sounds like I could negotiate that if I don't join the group.  The group contract is actually $2400/acre bonus but the lawyer fees (6%) may have to be paid out of that ( I guess that is where the $2250 comes from).

Permalink Reply by Brent Laner on June 11, 2011 at 1:15am
No the 6% is being paid by Chesapeake, the landowners get $2400 per acre.
Permalink Reply by Leann K Appel on September 15, 2011 at 6:32am

Hi Del

 

Would you let me know your thoughts and what you find out. we do not live in Ohio but own 10 acres on the Tusc Carroll line. We have leased our property to family that intends to buy it but have not the money they need to get a loan

 

Leann

 

 

Permalink Reply by Del Jones on September 15, 2011 at 3:42pm

Hi Leann,

 

What information are you looking for?  I would call Jason at Greenwood or cotact the OVL group to see if yor land fits in with their groups.  The contact information for each of these is contained within other posts on the thread.  (Sorry, don't have them handy at the moment).

Permalink Reply by Nate on September 16, 2011 at 2:22am
What township are you in Del?
Permalink Reply by Del Jones on September 16, 2011 at 11:17am
Goshen - near East High and Baltzley Valley Rd.  Greenwood (for Siearra) has signed a group all around me while the OVL gorup (for Chesapeake) has signed folks all over the county.
Permalink Reply by Paul Martinelli on June 28, 2011 at 10:10am

Lease offers in Tusc County are going up......the $2400/acre is up to $2700/acre.

 

If the Buell well numbers come out great like expect....numbers will rise again.

 

Anyone know of any units filed yet at court house?  I see tanker trucks every week heading East on ST RT 39 towards Carrol county......I need to put up a truck stop!

Permalink Reply by Del Jones on June 28, 2011 at 10:16am
Who is offering $2700?  It doesn' t matter much to me since I am already committed to the OVL group.  Hopefully, the gas really flows eventually, making the 17.5% gross revenue actually worth something.
Permalink Reply by Del Jones on June 28, 2011 at 10:18am
Oops!  Never mind.  I just received notice that it is Chesapeake and the OVL group is getting that price!

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