Replies to This Discussion

Permalink Reply by AT on September 22, 2011 at 3:55pm

Hey Tod,

   Haven't seen you since we used to play basketball on the court at the Jewett Park 30 years ago. Hope you are doing well. Is their offer a gross or net royalty and do you have contact information for the two Kenyon landmen?

 

Thanks,

Alan

Permalink Reply by Mark Allen on September 23, 2011 at 3:26am

Where and when,I assume in Rumley twp, since all you Thompsons r speakin.

 

Why would they offer that much now,when they can still lease it for $4250 and 18%?

 

I suppose al had positive vibes from the dairy princess.

Permalink Reply by AT on September 23, 2011 at 3:36am

Mark, I haven't seen Al Thompson anywhere on this discussion board.

Permalink Reply by Finnbear on September 22, 2011 at 3:56pm

And I have a Kenyon offer from early July at $2250 and 12.5%. My how times have changed - and FAST.

Permalink Reply by AT on September 22, 2011 at 4:02pm

Finnbear, FYI. A Wellington landman was talking $6K on some Jefferson county acreage this past week. Still trying to chase down further details on that one.

Permalink Reply by Finnbear on September 22, 2011 at 4:17pm

I have a buddy who bought some land (25 acres or so) in Jefferson back around Christmas for about $1500/acre. He sold lease rights in February for $1500/acre which seemed like a good deal at the time since that gave him the land for free. Now it doesn't so great but...

Permalink Reply by AT on September 22, 2011 at 4:25pm

Finnbear, I'm guessin' he's kickin' himself in the ass about right now? Or at least should be? He may be kickin' a little harder between now and the end of the year the way it's looking!

Permalink Reply by Mickgyver on September 22, 2011 at 4:39pm

Hey Finn bear, it is getting interesting the more we can keep our neighbors together seems to be attracting a lot of attention , I see you are in the cville group ,me too, I went to school with larry , I saw a post that dez was doing a signing , but I can't find the details . It will be interesting when we really know if we need to invest in a camel and buy a tent because there will only be room for wells. As you said there are a lot of changes coming, 5 years ago I was offered enough to buy a medium dominos pizza ,per acre .

Permalink Reply by Jake Jackson on September 28, 2011 at 5:06pm

try to find out all you can before believing the land men. i found this site to cover a lot of bases on most of the issues. go to the menu on the left side or type something in their search menu.

good luck

http://www.marcellus-shale.us/

Permalink Reply by Al Cramblett on November 8, 2011 at 4:22am

As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.

Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in

Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.

Permalink Reply by wendy on November 9, 2011 at 10:09am

so....what to do then.   take the $5000 or wait for a better deal.  at what point will the oil companies say they

have all the acerage they need and proceed without those who have not signed.  my understanding is that if

the oil companies have enough acerage and a handful of us dont sign, then they can frac horizontally

underneath our land whether we sign or not.  is this true and what in your opinion is the smart thing to do -

wait or sign now. 

Permalink Reply by Finnbear on November 9, 2011 at 12:18pm

They can't drill under your land unless they have your land leased. Ohio's setback rules make them stay at least 500 surface feet from any property that is not leased or in a drilling unit.

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