Replies to This Discussion

Permalink Reply by gary smith on October 21, 2012 at 8:10pm

the wells currently being punched come in, the land will  be leased quicker than a knats hic-up. you're all close so hang on.

Permalink Reply by Samuel J. Orr on October 21, 2012 at 8:13pm

I have no first hand knowledge whatsoever, but I have read that O&G companies each year budget for   varuous categoires; for example, a certain amount for lease acquisition, a certain amount for drilling, a certain amount for geologic/ seismic studies etc. I have also read on various sites that many companies have used up all the money they had allocated for leasing for the year 2012 If this is true, it may at least in part explain why leasing has slowed to a trickle. Of course the low price of gas may also be discouraging both leasing and drilling. There are many factors to explain the paucity of lease offers, as well as some of the low ball figures that are out there in the market at this time. An old adage is that " Gluts turn into Shortages and Shortages turn into Gluts".

Permalink Reply by Berk on October 21, 2012 at 8:17pm

When will these regional meetings dates/areas of interest be announced? 

Permalink Reply by David Hunt on October 21, 2012 at 9:29pm

We are working out the final details and will probably announce this week

Permalink Reply by Berk on October 26, 2012 at 9:49pm

David

Any update.

Thanks 

Permalink Reply by Sam Douglass on October 27, 2012 at 12:00pm

My suggestion is to maintain your interest and try to watch what is going on but do not get excited.

I think Sam Orr is right that a new budget year might bring a little more activity.  But do not think the producers are going to pay their highest prices to landowners right away.  They will first try to pick off the hungry and greedy who want the money for whatever reason and will not wait for better offers.  They have lots of time to lease because they already have a lot leased.

Eventually the producers may see that folks are not dummies and start raising offers to what Texans pay Texans for stuff that is not nearly as good.

Keep in mind that if they want to lease your property they have concluded that it is worth having.  From then on it is a poker game.  The producer has to have your property "eventually" and the landowner would like to have as much for it as s/he can get.  And keep in mind that the bonus may be the last real money you see for a long time - with 75 to 111 years of drilling to go and billion dollar plants still to be built to handle the stuff.

Hold in your excitement.  What happens next week is of little consequence. 

Permalink Reply by Sam Douglass on October 27, 2012 at 12:42pm

It is the producer's job to pick off as many landowners as possible at the lowest possible price before considering dealing with a group like NWPALG that will be seeking a fair price and return.  The stockholders of the company are not in the charity business.  They want their companies to buy low and sell high.  We all like to do that if possible.  Their first offers will not be their best offers because of the responsibility to stockholders to buy as cheaply as possible - and with lease terms as favorable as possible.  Guess what kind of instructions are given to the landmen who rap on your door.

Permalink Reply by 2z248p19vqnh9 on December 29, 2013 at 10:00pm

Nearly 2014...Happy New Year...Ho-Ho-Ho. Last post on this site: Sam Douglas on Oct. 27, 2012 @ 12:42pm...

...hop into the Tardis & fast forward to Dec. 2013 (ALMOST 2014...) - what has changed, what has stayed the same? NOW reading on GMS that 'Mercer Co.' is being paid attention to again...huh, fancy that.

Go Figure. As one light lights another, nor grows less - so nobleness enkindles nobleness.

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