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 Mike Knapp on November 18, 2010 at 3:41am
$400 per acre or $400 total?
Permalink Reply by Bill Meyer on November 18, 2010 at 4:53am
I am in Jefferson county and have been offered much more than that. I have heard some offers over $2000 per acre in this area
Permalink Reply by Elnathan Cory on November 18, 2010 at 5:53am
This is interesting. Cobra is in Canfield, Ohio and seems to be more of a leasing agent than a driller. I think they are trying to low ball at this point and resell the lease to make a profit. There web site is: http://cobraresourcesllc.com
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on June 22, 2011 at 4:52pm
They're not an agent, they drill like crazy. The reason that they can afford to drill so much is because they don't pay very much. If you want a well then sign with them.  If you want a decade of red tape and upfront money then sign with CHK.
Permalink Reply by Bill anders on June 23, 2011 at 3:47am
if you want a well drilled by a company who does not even have the capital to put together a position in a new play sign with Cobra i guess...great advice.  Guarantee they have not drilled a horizontal or Utica Well.
Permalink Reply by Craig on July 4, 2011 at 6:01pm
This from the resident Chesapeake landman.  Or at least one who is sold out to them being the only game in town. 
Permalink Reply by Tanya Gabriele on November 18, 2010 at 7:33am
Mike: It says "a" payment of $400 dollars within 90 days of signing. As listed above--there is no mention of paying anything per acre. Elnathan: I suspected the same. Everything I wrote is the way it was offered to us by letter dated November 15, 2010. This is one of many letters sent to us by the same company.
Permalink Reply by Finnbear on June 22, 2011 at 5:12pm
Be careful about that 90 days thing too. If it is 90 business days, then it really means 18 weeks and not the 3 months we normally associate with the term "90 days". One could end up waiting 5-6 weeks longer for a check if they were expecting 3 months.
Permalink Reply by Jim Litwinowicz on June 23, 2011 at 2:04am

While they wait the 90 days to pay you, they will try to flip to some other company.  Then they make a profit even before paying you your paltry sum.

 

And 12.5% is pitiful as they all pay 15% or better now.

Permalink Reply by Tanya Gabriele on June 25, 2011 at 12:20am
Hello Jim:  Check the date on my entry.  It was a long time ago.  Everyone in my neck of the woods now knows that Cobra is a company that acquires leases off of property owners to resell them to oil producers for their own gain.  We don't deal with them.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on June 27, 2011 at 4:23am
That's simply not true.  Or at least it wasn't true of them years ago.
Permalink Reply by Craig on July 4, 2011 at 6:04pm
They are still drilling in Crawford County Pennsylvania, so, no, they do not only do what all here seem to say - they are actually a prtty good company for what they do.  I have had dealings with them, and know many people with Cobra wellson their land - they like them, they pay, they drill, they just don't sell out to China, but, just as Belden and Blake, Chevron, Penn-Virginia, Enervest, Nornew, and if you like, CHK, they all form joint ventures or trade properties to make deal work.

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