Replies to This Discussion

Permalink Reply by Clinton44 on April 9, 2013 at 4:20pm

Hi Thersa,

They are a royalty buying company. They more than likely will offer you a lump sum for part or all of your future royalties.

If you are receiving offers you more than likely are in an area that has been drilled or is scheduled for drilling in the future.

We are in Clinton and Lycoming Counties these types of companies sent us enticing offers to buy half of our future royalties shortly after we leased with Anadarko in 2010 We held on to all our mineral rights and are glad we did so.

What part of Tioga are you in? Is there any drilling activity in your area?

Permalink Reply by Theresa Kolk on April 9, 2013 at 10:48pm

Hi Clinton,

 

   Thanks for the reply. I was a litle leery of this, but didn't want to discount it entirely. I am just a few miles west of Liberty and route 15. After I posted, I checked for any new drilling permits and found two for the Liberty area. They did seismic testing last summer.How long after the testing and well permits do you get any info from them? I also leased with Anadarko, but in 2006 before anyone had heard the words "Marcellus Shale" and am now in my second year of the lease renewal.

   I am kind of a no-nothing newbie, since it didn't seem they were going to do anything in my area. Any info or tips are greatly appreciated.  Thanks again, Theresa 

   

Permalink Reply by Clinton44 on April 10, 2013 at 2:11am

Hi Theresa,

Just talked to a friend that has land in Morris Twp. Tioga County they to have a older lease as well from back from the before Marcellus Shale explosion. Not sure how far from Morris Twp. you are? He said there is a pad staked out on their property and Anadarko has communicated to them that there are 12 wells proposed for their pad. It seems they are waiting for the pipeline infrastructure to be built out. He also said there is ongoing pipeline work in the area.

We were fortunate there was already the Transco.pipeline in our area so all that were needed to get our wells to production were the gathering lines.

I think eventually the infrastructure will catch up all over the Marcellus region and most areas will be fully developed as far as production units. How long that takes that is a good question and in my opinion the infrastructure build out will be driven by gas prices and increased export capabilities to world markets.

So if you have time and patience and don't need the funds right now I would hold out, or you could consider selling just a percentage of royalty interests if you need cash now. My other opinion is if the royalty buyers are making you offers they have done there home work and feel that you are in an area that will more than likely developed at some point, again when that point is only the gas companies know..

The time frame for our units was as follows leased in 2010, pooled into units in 2011, wells went into production Jan 2012 but this was due to our close proximity to pipelines. Seismic testing actually still going on in our area and has been since the beginning.

I will send you a friend request if you accept we can then chat in the private email section of this site if you have any other questions I would be glad to provide some input and keep you posted on any chatter I hear from our friend with property in Tioga.

Permalink Reply by Theresa Kolk on April 10, 2013 at 10:14am

Hey, Clinton,

   Thanks for the quick reply. Right now I do have time and patience, just trying to get all the facts I can. I don't know how familiar you are with my area, I am off 414 between Liberty and Morris, closer to Liberty, about 2-3 miles from town.

   If you don't mind, I have 1 or 2 more questions. Do you have a gas lawyer you could recommend? Can they re-new my lease for a third term (it's up about 2016) if they haven't started any drilling yet and would they automatically do that or would they have to re-negogiate ?

   I have accepted your friend request and would also appreciate it if you could keep me up-to-date on any info your Morris friend may have. Thanks again, Theresa