Cobra Resources LLC Raises It's Head in Trumbull County

We recently received an offer from Cobra Resources LLC.  Julie Wessling, Vice Presidnet, Leasing writes:  "Cobra Resources LLC, is an Ohio-based natural gas producer that has been operating in Ohio and Pennsylvania for the past 7 years; thus far drilling over 150 wells in Mercer, Crawford, Erie and Mahoning Counties to include 10 wells in Trumbull County.  We are anticipating further drilling activity in Trumbull County and upon preliminary Geological studies it appears your property may be in a favorable position to be a part of that forthcoming project."  Cobra offers a "Paid-up Oil & Gas lease that includes:  
*Spud bonus of $8,000 per well, paid prior to commencement of drilling.
*5 Year Primary Term.
*Prior Approval of Access Roads,Tank Battery and Well Head.
*12.5% Royalty from Oil and Gas sold from the well.
*400,00 cubic feet (400MCF)  of free gas per well, per year for personal use.
*A payment of $400 within 90 days of signing.
There is no information indicating the type of drilling they have in mind. This offer doesn't match the offer we were granted more than 30 years ago from a local shallow driller.

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Permalink Reply by Tanya Gabriele on July 5, 2011 at 11:08pm
I recently heard that one of the companies is owned by Kuwait.  Does anyone know?  As far as Cobra is concerned--I was told they are not deep well drillers.  That's what I mean.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 7, 2011 at 4:02pm
Quebec Energy LLC--formerly leasing for Devon--is from Dubai with offices in Denver. Maybe that's what you're thinking of.
Permalink Reply by Mike Flor on June 25, 2011 at 10:06am
Thats one of the worse offers I have ever heard.
Permalink Reply by Tanya Gabriele on June 25, 2011 at 11:17pm
It was a bad offer.  That company was banking on property owners to be too stupid to know that.  That's why this website is a great public service.  It's why all of us should stick together and keep our neighbors, families, communities, and civil leaders informed.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on June 27, 2011 at 4:24am

"That company was banking on property owners to be too stupid to know that."

 

Turns out that such a statement is true.  Most landowners are woefully inept when it comes to leasing.

 

Permalink Reply by James Kerns on June 27, 2011 at 5:49am
Hello, I am in Bloomfield Twp.,Trumbull county and also recieved a paid up lease offer from Cobra Resources with the same language. After speaking with Julie Wessling in a meeting, and later a close personal source that is in the oil business, i have come to find these were sent out to many landowners in the county as a shotgun blast effort. Please be aware the $400 is a flat fee regardless of acreage, not four hundred per acre or four hundred per year, just $400. This is an extremely lowball offer and not a landowner friendly lease either. If you read this and own property in Northern Trumbull or in Ashtabula County, please contact me if interested in forming a landowners group to put together drilling units and fielding offers from Chesapeake and Sierra, the big dogs on the block, from a more favorable position.  I own and farm 70 acres, and am pro-drilling with conditions and proper financial incentives. Thanks,
Permalink Reply by James Kerns on June 27, 2011 at 6:08am
Cobra drills Clinton wells and will either flip your lease for $2,000.00 per acre or better, or drill a Clinton well on your lease to hold by production and then work to lease out the Marcellus and Utica to the highest bidder. I personally know one of the owners of cobra,  and also have a close friend in the business (he is a production foreman).  I also have college education in Petroleum Geology and Petroleum Engineering and used to work as a well tender or "pumper" as they are known. I do not work in the business currently but do have an interest in leasing my own property for the most favorable terms possible. I cannot work any better deal for myself than i can work collectively if i can work as part of a landowners group, so if you have an interest in talking more about this please contact me. Thanks again.
Permalink Reply by Tanya Gabriele on June 27, 2011 at 11:42pm
I still say, "Do not deal with Cobra."  You'd be better off dealing with a more substantial oil producer.  My brother-in-law is a well tender too.  He has his own company and has been in the business for decades.  My neighbor is the Vice President of a local petroleum company that competed with Atlas.  He has also advised neighbors to reconsider anything Cobra has to offer.
Permalink Reply by Larry Andrew Chako on July 13, 2011 at 11:58am
I own 28 acres in Champion Township, Trumbull Co. and I am interested in pursuing a lease or forming a landowners group for pursuing lease opportunities. Please contact me at chako.larry@gmail.com to further discuss this. Thanks.
Permalink Reply by Tanya Gabriele on July 13, 2011 at 3:09pm
Yes.  I think everyone in Trumbull County ought to band together to make sure WE maximize our lease opportunities.  i will contact you.  Thanks.
Permalink Reply by James Kerns on July 13, 2011 at 7:48pm

Larry, Tanya and any other interested parties, thanks for your reply. I have added my two cents worth to a couple of threads on this site and had little feedback. I dont hold myself up to be an industry expert, but think i may know more about the industry than the average bear, so long as that bear doesnt work in the oil patch. I farm and my wife is a nurse, we would like to lease our land but want to see the ante go up of course, and i am very much an environmentalist kind of guy.

I would be interested in seeing a group formed but i will say up front, i would not be the structure and organizational lead type, as i have too many other irons in the fire. I would however, be dedicated to helping out as much as i would be called upon. That said,where do we begin?

I can be contacted at kernsenterprises@yahoo.com

Permalink Reply by Tanya Gabriele on July 14, 2011 at 4:11pm

Hello James.  Instead of thinking in terms of hierarchies, let's just look at it as a collegium--a group of friends--all equals--just bound together by a common interest.  That's what I love about this website.  

Technically--we've already begun.  Just invite your friends and neighbors to join this site.  If we decide we'd like to meet to discuss a subject--we can all come to a consensus from here.

i think the next step is to introduce your friends and neighbors to this website.  I am willing to call WKBN 570 to invite Trumbull residents to join us.  Perhaps, we need to come up with a name for our group.  What could we call ourselves?

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