Replies to This Discussion

Permalink Reply by rahja1 on October 30, 2011 at 2:20pm

I was wondering if anybody knew what the going rate was for portage county, specifically McClintocksburg rd. between whipporwill and cable line. I have 30 acres there and Chesapeake has been pounding me for a few months now. Started out back then at 1000 an acre 12%, I have them up to 3000 but can only get them up to 15% on the royalities, Im looking for 17%. Then I read just down the road in mahoning county 5800 an acre and 20%? Yikes! Id hate to sign for that when less than a mile away their paying double. Im new to this forum so any insight would be much appreciated. Ive been dealing with a landman from chesapeake on my own, no land group involved as I think their just after a piece of the pie. I do know what several folks in the neighborhood have signed for and my 3000 offer is way above what others have signed for.Thanks for reading this!

Permalink Reply by Dave on October 31, 2011 at 4:27pm

With portage county on the edge of the wet gas play and definitely situated in the oil region of the Utica,  I expect the offers will continue to rise.   My hope is that more people share information on this forum the benefit of the landowner.   Please take the time to review any lease language carefully.  Can you comment if the royalty percentage is "gross" or "net".   As landowners we should be pushing for 20% Gross if not better.

Permalink Reply by rahja1 on November 1, 2011 at 2:19am

thanks Dave, I cant comment on the lease language, I havent gotten that far with them yet. Chesapeake is a 9 billion dollar company and projected to be a 12 billion dollar company in 2012 so Im not giving anything away.I asked for a few addenums including no surface traffic, no storage and testing my water well before and after drilling which the landgirl agreed to.Another thing that concerns me is they want a 10 year lease, Im thinking 5 but thats probably not gonna happen?

Permalink Reply by Dave on November 4, 2011 at 4:18pm

Here are some things to look out for in any lease.   

http://www.emenswolperlaw.com/wp-content/uploads/2011/04/EW1354_000...

 

Also,  Chesapeake announced a joint venture with a large Oil Company.  (link is posed on the message board below).  It was also reported that Chesapeake will not be releasing additional production data anytime soon because they are still trying to lease additional property.   After their last announcement the market value for leases increased significantly.

Permalink Reply by Dave on December 12, 2011 at 1:53pm

Did you ever make any progress on negotiating a 5 year deal?

Permalink Reply by rahja1 on December 16, 2011 at 7:12am

they blew me off , last offer was 3K an acre but only wanted to pay 15% royalty. I said 17% and you have a deal, they said no. LOL...bullpucky, I expect they will contact me again in the spring.

Permalink Reply by Jefferson on December 17, 2011 at 5:01am

There is a lawyer group forming - if you friend me I'll give you the info.  We were able to get a higher percentage in our lease.

Permalink Reply by 01xfqv4bcdqh6 on December 19, 2011 at 8:43am

Jenni-

I have a client w/ 66 acres in Portage looking for a good group if you could contact me. They need a non-surface lease but its a good piece well located.

Thanks,

rgrodin@gmail.com

Permalink Reply by Dave on December 21, 2011 at 12:10pm

I agree...  I expect the area will be seeing more action in 2012.

Permalink Reply by rahja1 on January 6, 2012 at 9:12am

Like I thought, Chesapeake called again with some 'new' information. The 'new' information was she wanted to inform me that the current lease offers in portage county are going DOWN! LOL...so why are you calling me? Well, I thought maybe I could resubmit my previous offer and they might accept it. Pfffht.....the 3000 an acre and 15% royalty one? Yes, they might accept it but might not. I told her no, call me when the 17% is acceptable, the 3k an acre is good with me but the 15% is low. So.... tough game these guys play, does 17% sound unreasonable or is this the games they play?

 

Permalink Reply by Dave on January 10, 2012 at 10:27am

Leasing has been slow all over this play,   but that was expected due to the Holidays.   No one is going to make major decisions during the last half of December.   I have heard things are picking up.....   they would not call if they were not interested.    I do not believe 17% would be a deal breaker.    More production information will be posted in the comming months.   I have heard many wells are exceeding expectations.   Bottom line is do what you think is the best for your family.    Good Luck.

Permalink Reply by Tom Frey on February 7, 2012 at 11:55pm

Does anyone here know anything about the land group NELA ?

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page