Is this a good location to buy land?

I have been given the opportunity to buy some land in osnaburg township in stark county.  It is 15 acres and currently is hbp from a clinton well.  I am buying the property as an investment.  My question is if you put aside all the other factors that can influence if a well is drilled and just focus on the geology, is this a good area?

Views: 1110

▶ Reply to This

Replies to This Discussion

Permalink Reply by Tom McConnell on September 19, 2012 at 10:04am

Osnaburg township is in the Eastern part of the county and has a good bit of activity.  Without some data points handy from producing wells, it is hard to tell.  There may be someone else that knows specifics about wells in the Minerva area.  Judging by the activity in the area that I have seen, I would say it should be a reasonably good area.  The more important part, even though you didnt want to go this route with your question, is who the HBP operator is.  Some have been known not to play with the big producers making it a longer duration payback if at all.  I suggest finding out who the operator is and checking the courthouse to see if they are playing in the sandbox or not.  You may just find the piece in question has already been subleased to someone that will drill it.

Permalink Reply by JR on September 19, 2012 at 10:23am
Food for thought too, our land (Tuscarawas co) is HBP from a Clinton well, but the deep rights were sold off to Consol years ago. I'm sure you'll do a title search, etc but I'd also call the Clinton company and specifically ask who owns the rights below Clinton. Two title searches and an atty review did not spell that info out for us. Had to find out from my own digging.
Permalink Reply by jeff on September 19, 2012 at 11:04am

The shallow lease is held by Petrox but Enervest and Chesapeake have a joint lease on the deep rights.  I have been told that they just finished doing a seismic survey on the property.

Permalink Reply by JR on September 19, 2012 at 11:27am
Then expect to be approached for a lease modification eventually, which could sweeten the pot, but not much. Then, expect that you'll end up with a different driller which, IMO is a good thing! Good luck!
Permalink Reply by Rick on September 19, 2012 at 12:31pm

Obtain a copy of the current lease.  We also have a similiar situation where Petrox bought the shallow Clinton well and Enervest owns the deep rights.  The lease however has a unitization clause that states only up to 160 acres.  I'm assuming the lease will need to be modified to 640 acres if Enervest wants to drill.  Maybe that's why their are looking at selling some of their holdings?

Permalink Reply by JR on September 19, 2012 at 3:44pm

Evervest is selling out to someone.  But the lease will ultimately have to be modified.  Let go of any hope of a signing bonus(that's long gone) , but get a good o&g atty to get you the best deal you can given your situation  with the unit size. We're in the same boat.  If they drill, which I believe eventually they will, you'll end up with a better percentage.  Be on the aggressive.  They will drill this whole region and suck it dry.  Just capitalize in the best way you can.  And the guy below you, would love to guy...but I'm guessing someone else in the future will give you a helluva LOT more...if you can wait it out I'm guessing you'll be happy you did!

Permalink Reply by David Mohn on September 19, 2012 at 11:57am

Well if you don't buy it let me know and I will buy it.  I have a hunch and it is only a hunch that eastern Stark county will have lots of oil.  Just a hunch but I will buy the land if you don't.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service