Replies to This Discussion

Permalink Reply by Gasman on November 11, 2011 at 4:43pm

And.......... You believe the landman? I received information from a Shell representative (not a landman) that Shell will be increasing their offer after the first of the year. The reason being is to keep pace with XTO and Ramge which are currently higher than Shell and Chevron. The expectation from this rep is that XTO and Range will be mote aggressive and with higher numbers after the first year as well. He clearly said the demand for Butler is increasing!

Permalink Reply by Bill on November 12, 2011 at 5:36am

Actually, the current Shell offer is better than the current XTO (at least in my experience as of November 5).  Shell is offering an 18% no deduction royalty, while XTO is either 15% no deduction or 18% with deductions.  Both are offering $3,250/acre. I haven't seen anything from Range or Chevron, so I can't comment on them. I can't see the point in decreasing an offer though.

I have also heard that the demand is increasing and that offers will be maybe moving up after the first of the  year.  Competition in the markerplace is always a good thing! It is moot for us, we have signed the deal with Shell, and are happy with what we got.

Good luck to everyone, and I hope you all get your best deal!

Bill

Permalink Reply by Gasman on November 12, 2011 at 12:40pm

Actually XTO is at $3850 and 18% in most of Butler County and the expectation is that they need to up the offer. I really don't see the numbers going any where other than up!

Permalink Reply by Johhny Jacobs on November 12, 2011 at 2:34pm

I'd be interested in leasing if this were reality...can you substantiate that claim?

Permalink Reply by Gasman on November 12, 2011 at 3:08pm

Well Johhny I could be like you and throw out a bunch of garbage that means nothing but instead I will do what "I" do...... And state the facts! Now many people have signed with XTO and will not reveal what they signed for publicly but will share that privately and have with me I could leave it at that but public entities must disclose what they do...... So...... Drum roll please.....look at what South Butler signed for (yes it is the same as many private entities) it is listed in the Butler Eagle On 9-15-11 for yur reference.
I will be interested in what you (a self professed landman) has to say bout that! Maybe cutting into your profit margin?

Permalink Reply by DKinPA on November 13, 2011 at 5:11am

I agree, the numbers are going up!  The landmen may tell you otherwise but the facts show that the offers will go up......they are determined to sign every parcel they can, just ask yourself why? 

How many times have you seen a store advertise a sale and create the impression if you don't act now you will never get it at this price or a salesmen saying "this a last chance offer ending today".  This is no different, be informed, look at the facts and preferably join with your neighbors in a group!

Permalink Reply by Edward M. Gall on November 17, 2011 at 5:00am

I am new to this discussion...I have 5 acres in center township.  Where would I go to see about getting an offer?

 

thanks

Permalink Reply by Sam Hopkins on November 19, 2011 at 1:37pm

Gasman, do you have a contact for an XTO landman?

Permalink Reply by john kaye on December 20, 2011 at 10:44am

Gas man  can you tell me where in butler co. XTO paid $ 3850 and 18% and also what about deductions . thanks  john

Permalink Reply by Gasman on December 21, 2011 at 7:45am

John,  they have been offering that in Penn Twp and Middlesex Twp and maybe others that I don't know of......the most public signing at those rates would be the South Butler School district signing and I don't believe there were deductions in those royalties.

 

Sam, you can call XTO at 724-772-3500 and I am sure they can set you up with a rep in your area.

Permalink Reply by Kristen Rider on November 18, 2011 at 5:45am

I am in Fairview Twp, Butler County and we are looking for information about leasing our 14 acres. Can anyone give me information on how to get started?

 

Permalink Reply by Sam Hopkins on December 20, 2011 at 11:10am

Look for a recent message by me asking for help. It contains the numbers of companies that are leasing in various areas. Just call them up and tell them you are interested in leasing (you won't take them by surprise, they get tons of calls and know how to handle). They will get back to you (all are very nice) and will give you a "sample lease" to compare with others. 

Good luck.

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