Replies to This Discussion

Permalink Reply by Robin Hood on June 21, 2012 at 4:43am

Read all the discussions on this web site and all will be revealed.

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Permalink Reply by JR on June 21, 2012 at 4:46am

Are they wanting to drill on your land?  Or just asking you to sign a lease at this point?  The best advice anyone will give you is to get a good oil and gas attorney and don't sign a thing until your atty has reviewed and helped you negotiate.  

Our attorney tells us a negotiation for drilling/lease amendments/etc will cost about $800. Not sure if you've leased recently, and if it includes things like right of way/access roads, pipelines, etc. but those are things to negotiate aside from the well pad.  Licking is pretty far west so it's probably oil.  It's just the beginning and many drillers will tell you they're in "exploration phase" of the play.  

CHK is selling off a large portion of their acreage and has kept acreage where they have lots of contiguous land, and I suspect is in the true "sweet spot" of the play.  I'm not sure if CHK is still a player in your area.

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Permalink Reply by JR on June 21, 2012 at 4:48am

I also agree with Robin.  Many folks on here were in your position this time last year.  There's a wealth of opportunity to read past conversations.

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Permalink Reply by Billy Park Whyde on June 21, 2012 at 4:54am

Licking County , living on the county line I would doubt if they are in a big hurry to drill. Why expend the money about $12,000,000.00 to drill a well without enough leased land around it to enhance the investment? 

Pretty slow right now as I think the presidential election has investors on a holding pattern. Romney gets elected its Drill Baby Drill, Obama studies and green backs (our taxes) to fund the failing alternative energy base. Plus higher taxes!

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Permalink Reply by Billy Park Whyde on June 21, 2012 at 4:58am

You might like to check out the Licking / Muskingum County Group http://gomarcellusshale.com/group/muskingum-licking-county the more we can share information the more we know! You were approached by RE Drilling? Personally never heard the name. If that is their name try the Licking Conuty recorders office to see if they have any leased land to begin with. 

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Permalink Reply by Billy Park Whyde on June 21, 2012 at 5:03am

  At present if any consultant knows the answers they know more than the big oil and gas companies do. With CHK situation in the dark one would only be a guessing. Hold, educate your self, the bottom line is you know what is best for you and you need to know what questions to pose to get to that point. In GOMS a lot of those questions are asked with some pretty sound answers being given. 

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Permalink Reply by leslie studer on June 21, 2012 at 6:48am

Thanks so much for your replies- the oil man that approached me," my re-drilling statement," was a broker. I actually told him I wasn't interested until I learned more about it.

It is overwhelming, you don't have any idea what is legitimate information- that's why I turned to you folks!

thanks again

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Permalink Reply by jett on June 21, 2012 at 6:44pm

Leslie,

It takes alot of time but you'll be glad that you educated yourself before signing. Make frequent use of the search on here and you'll learn what to ask for and what the pitfalls are in leasing. Here are some terms to start with:

gross royalty, marketing enhancement, well pad, landmen, signing bonus, water testing and damage, shut-in, pooling, audit clause, right of first refusal, Pugh clause, warranty of title, primary and secondary terms, held by production, force majeure, release of lease clause. Hope this isn't too elementary or too much information to throw at you!

Hope it works out good for you.

Jett

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