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Permalink Reply by Samuel J. Orr on September 18, 2012 at 3:34pm

This just in on Crawford County site. Some Adapt leases not being paid. Adapt also I believe was leasing propetry in Crawford County as a surrogate for Halcon. Someone posted they had signed lease with Adapt in April, and cannot get landment to even return calls. I suspect will see same thing in Crawford County that happened in Mercer County, and now in Venango County, with Halcon opting out of "leases" on a grand scale. I hope that I am wrong. Another lawyer group MSGL (MarcellusShaleGasLawyers) or something like that is to hold meeting on Monday to announce that a deal has fallen through. I believe this deal is for acreage in Venango County because the information was posted there. See my recent post on Venango County site for what I think may be happening. I have no first hand information, but I think my conclusions are likely true. 

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Permalink Reply by james on September 18, 2012 at 4:10pm

Tonights meeting didnt seem to have many positives to me, they are hoping Halcon will still pay the lease money, hoping for another oil/gas company as a backup,  hoping the group stays together, hoping Hilcorp will step in and take some of the Halcon leases? If another company does step up and make an offer I think the offer will be in the $2000-$3000 range, why would someone pay a premium for something that another company doesnt want? I hope I am wrong, I want the offers and demand to go up, not down.

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Permalink Reply by Samuel J. Orr on September 18, 2012 at 4:46pm

You need to get real. If you get $2500 you should be happy. Remember you were benefitting from the mass marketing. Do you think Hilcorp or any other company will pay $3850 after Halcon has cherry picked all the most valuable properties from the Mount Jackson 4 group? I sincerely do not believe that as a matter of good business practice that M&P/CX should charge you one penny even they find you another lease except under certain circumstances. Any bonus money offer up to $3613 per acre, they get nothing. If they get an offer between $3613 and $3850, they earn per acre the amount by which the offer exceeds $3613 up to $3850. If they get an offer of $3850 or better they earn 6% of the total offer. For example if the offer were $4000, M&P would earn 6% or $240/acre and the landowner would receive $3760/acre. This means they have to get you a good offer to earn any significant money. Just my rambling thoughts on what might be fair.

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Permalink Reply by Michael R on September 18, 2012 at 11:35pm

Im not an expert but in my opinion I dont think that Halcon cherry picked the best spots in the county.  They took the area in which they could put together the most continous land, which happens to be in the northern section.  Hilcorp already had significant control of the land leases in the southern section of the county, this was the case back in June when I was in discussions with them.  Why would Halcon want to pay people for scattered parcels in the southern tier when they would never be able to get enough land together to do anything.   

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Permalink Reply by Samuel J. Orr on September 19, 2012 at 12:39am

Michael: You may be right. I hope that you are right because I want al landowners to get paid. What has happened with the Halcon leases may be because Halcon is suffering a cash crunch per my prior posts. I remain somewhat concerned about new geology. I hope the geology is all good in Mercer County, because I have land in eastern Venango County pretty close to the Mercer County line. I also am concerned whether Halcon will ultmately pay the so-called winners. While I think the odds are that they will; I have difficulty relying on much that they say. Still see no stories in local or national media about them declining to fund bonuses on thousands of acres. I think optimism is fine but I do not put a lot of trust in Halcon. It would be nice to know how many acres they have bailed on in Ohio and Crawford Counties. I think the total for Venango and Mercer combined is over 60,000 acres.

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Permalink Reply by Samuel J. Orr on September 19, 2012 at 1:21am

I meant to say I have land in western Venango County: Pardon the senile moment.

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Permalink Reply by james on September 19, 2012 at 2:17am

The news of the meeting was on the local news last night and this morning, it was on 2 news channels, channel 21 and channel 62, I was seen on tv talking to my uncle at the end of the clip wearing the red hat.

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Permalink Reply by robert vepich on September 19, 2012 at 10:12am

EXACTLY!

Halcon negotiated a deal in their best interest, as every company generally does.  This is why you do not have 30 attorneys who have never practiced law or oil/gas shop your acreage around for you for a fee.  If something sounds to good to be true it generally is.

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Permalink Reply by Oliver Perry on September 19, 2012 at 2:00am

I don't think Halcon ever guaranteed anything. It was M&P/CX who verbally guaranteed the group. They had no business saying it and now many people are going to suffer because of it. I don't think Halcon will change their stance. While what they did is distasteful, I don't think its illegal. In fact it is fairly common with all O&G companies.

On another note, I wonder why Elnathal has not chimed in on this discussion. He worked himself up into such a frenzy maybe they hauled him off to jail after the meeting. LOL

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Permalink Reply by Brian V. on September 19, 2012 at 2:03am

If there was no agreement for Halcon to take all the acreage and not just what they wanted then CX/M&P failed in their joint representation of all landowners involved. It appears to me that they took the highest bid and did not consider all factors, most notably a companies ability to pay. Marketing large chunks of acreage like this should be outlawed. There is no way Halcon could have developed it anyway. They would have flipped it eventually. CX/M&P were chasing the money and the headlines that they got for securing such a big deal. Now they have to accept the outcome of their poor representation, and the negative headlines that are associated with it. I still have never heard of a company being able to win a landowner group and agreeing to take all, and then being allowed to take just what suits their purposes. Amazing.

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Permalink Reply by james on September 19, 2012 at 2:23am

Anyone watch the news on tv about last nights meeting? They werent aloud in the school,  but they were interviewing people as they left the meeting. Its starting to get some attention now, at least 2 tv crews were at the school last night.

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Permalink Reply by Lance Nimmo on September 19, 2012 at 2:35am

Yay lawyers! Halcon did exactly what any O&G business woul dhave done if they recieved a bonehead agreement that didn't commit them to one acre they didn't end up wanting. There shouldn't be one person on here that thinks Halcon did anything "unethical." Now, if you signed directly with Halcon, or their landmen and they did this, they are POS's. Fact of the matter is they were handed the perfect opportunity to sift through one sided leases that had the landowners by the balls, but they weren't on the hook unless they chose to be.

I negotiated everything myself. Did I screw up some early? Yep. If we were in the south where there were actual O&G attorneys that knew O&G law for the past 20 years, that'd be different. I woud have used one in a heartbeat. But to simply get up in the moring and decide to be an O&G attorney, use marketing to get landowners together, and call myself and O&G expert is disengenous at best. Come to think of it, should common sense tell you if someone calls themselves an energy company, but they don't produce, transport, develop, or even sell energy something is up???

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