Leasing info-Butler/Lawrence County

Just looking for some help from anyone who has recently leased in Butler/Beaver/Lawrence County.

I have 55 acres, my father has 28 acres and my godfather has 30+/- acres in Muddy Creek Twp. None of us are leased and our properties are adjoining.  Rex apparently has everything bought up around us.  We tried to lease with them back in October/November of 2011 for $3,000/acre but gas prices fell and they back out.

They are trying to lease us again for $400/acre per year for 5 years.  Which would be $2,000/acre assuming they dont do anything in 5 years.

I see on the Lease Offer DB page that someone in Butler County recently leased 14 acres for $3,000/acre and 15% royalties. 

I am very close to the Butler/Lawrence County Line and I see on that page that in Lawrence people recently lease for $3,250/acre and even $6,000/acre.

Is anyone else receiving these prices per acre?  And if so, who are you leasing with?  I dont know if I am getting a lower price because im surrounded and have no choice or what....maybe I should hold out for better price but there is a propsed well site for 2015 on my neighbors property.

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Permalink Reply by Oliver Perry on January 10, 2013 at 8:50am

I saw the post for Lawrence Co. @ $6,000 & 22%, and I don't believe that one at all.  Anybody can post any fictitious amount there, its not necessarily true. The recent post for Butler Co. @ $3,000 & 15% could very well be true. Shell is still leasing a few parcels "of special interest" in northwest Butler Co., but that's about it. Have you contacted Shell? They have done some leasing in Muddy Creek Twp. and might be interested.

Being surrounded by REX leased parcels is a difficult situation, but if they end up needing your acreage to complete a drilling unit, it would be worth much more than $400/acre per year. Also, if your land is northwest or southeast of the proposed well site, that could bode well for you to be in that unit. But I wouldn't count too much on a "proposed well site for 2015", things can change rapidly in this business, as we witnessed when leasing abruptly slowed down considerably last year.

Here is the contact info for the company that leases for Shell, it can't hurt to see if they have any interest.

http://www.southeastlandservices.com/contact-southeast-land-services/

Permalink Reply by Tori Hogg on January 10, 2013 at 9:53am

Thank you!

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