large acreage packages

Not too long ago there was a lot of chatter about the large acreage packages being put together.  I am guessing these are currently in the marketing phase.  Does anyone have any updates on any of these?  I opted to pass on several offers and am wondering if I made the right choice.  Any factual information would be appreciated.

JB

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Permalink Reply by craig on June 30, 2011 at 5:39am

Just happened this Tuesday.  

A group in Northern Beaver County and Southern Lawrence County evidently received the best offer on their land package...i believe it was something like 30,000 acres. I was told by  two folks that the best offer was from Chesapeake... for  $2350 per acre and 15%, and of course the firm representing them got $150/acre of that. I also was told they only wanted the land in Beaver County. I believe this info is true as i heard it from 2 folks involved in the package.

Doesn't sound like it was worth the effort to me, but what do I know : )

 

Permalink Reply by Nancy LeNau on July 5, 2011 at 3:54pm
Craig, This is Nancy from Hookstown.  I was at the meeting at Western Beaver High School that Tuesday and Chesapeake offered us $2,350.00 and 15 % Gross.  Our contract with the Mount Jackson group was for $3,000.00 and 17 % but they handed out these cards to ask us if we would accept their offer. No other company made an offer, we were told.  This was a basket of Land in Beaver County of 13,000 acres.  Chesapeake said they had to know by July 5th.  Chesapeake needed a certain amount of acres for this to go thru.  .........Range is dealing with the hwy. 30 property in Hookstown and Clinton (my other farm.)  Seems like they are working together as not to up the price of the bids..meaning....each company has their own section of properties.  (Just a thought),.....................   Thank you for your help in the past.  You have been a great help to me.   I still have much to learn.  Nancy
Permalink Reply by Nancy LeNau on July 5, 2011 at 4:01pm
Craig, I forgot to mention....... Our contract was only for Marcellus and Utica. Nancy
Permalink Reply by JoKlause on July 1, 2011 at 1:10am
Craig, I was at that meeting.  I don't know who the two people were that you talked to, but not one of the statements you made were true.  I live in Lawrence Co. and I have 285 acres in the pot.  Wait..one statement was correct, the meeting was on tuesday.
Permalink Reply by craig on July 1, 2011 at 2:06am

Wow, Sorry.  I guess my customers were at the wrong meeting or fed me BS.

Until someone else posts what happened differently, I still have to believe what I was told. Seems weird that you were there, but not posting what the results were as per the OP question, doesn't it?

Please enlighten us!

 

Permalink Reply by mark o on July 1, 2011 at 2:27am

there was an offer made by chk.  don't know how many acres but my neighbor confirmed the $2300.  he has a large chunk in beaver county.  i believe thses people could have done better on thier own!

 

Permalink Reply by JoKlause on July 1, 2011 at 2:37am
1st the acrerage total for the group is well over 50,000.  There are many companies interested in Lawrence & Mercer Co. and the offer was $2600 per acre and 17%.  The Company stated it wanted all parcels in both counties that were in the group.  The only prob was this is not a oil/gas  company.  They want to gobble up the leases and resale.  If they don't resale in 6 months, the group has to start all over again.  Not very appealing..but..if they are willing to pay $2600, they must be pretty confident they can resale the lease.  So the group took a show of hands and decided to wait it out.
Permalink Reply by Jim Litwinowicz on July 1, 2011 at 2:30am
I was at the meeting too and both numbers were much higher. And the offer is more than $1000 higher than what my neighbor just signed for (and a lousy lease)  so I'd say it has been darn well worth it. The group is over 40,000 acres and is being divided into two groups to maximize the offers as some companies are interested in different areas where they are already active. And there are three other companies that we are still negotiating with so the numbers may get better.
Permalink Reply by mark o on July 1, 2011 at 2:38am
the offer is more than 2k than what i sighned for.  i was an idiot and signed with O & G.  from that respect it is a good offer, but an inside source tells me chk would have paid more had these people went directly to chk and dumped the middle man.
Permalink Reply by craig on July 1, 2011 at 3:01am

Mark, Anyone who signed with O+G some years ago were not idiots. If folks would have never signed with O+G back then, none of this would be happening right now. They were the ones who took the big gamble and sunk tons of money into two test holes to the basement in Beaver County in 2007. They were the ones who marketed their leases, knowledge, and data to Chesapeake. I have one parcel leased to O+G in 2006 for very little money...but it runs out soon. I don't feel bad about it.  If CHK doesn't drill soon, then I (all who signed with O+G) will be in the drivers seat cause the utica play will have been proven by then...about the time our leases run out....some of which already have.

 

Permalink Reply by mark o on July 1, 2011 at 3:10am
craig,  i know many people that were taken advantage by O&G.  right up until chk bought the leases.  one ex.  an old couple with over 100 prime acres.  husband has cancer wife was alone and o&g paid 5k in taxes to get them to sign.  that lease was worth a fortune..this was last year.  its one thing to get a good deal but another to rob people.  this couple is sick and may lose the farm.  o&g people can enjoy the money now but i believe they will pay later.  i can give many examples like this.  it may be legal but what they did to a lot of people is immoral!!
Permalink Reply by craig on July 1, 2011 at 4:01am

Yea, I heard the same things and I am not happy about it...wasn't right. I'm not sure what your definition of 'many' is, but i've only heard of about a handful that this happened to. I hate to see this type of greed creep into a good situation.

We all reap what we sow in some form or another.

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