Rex Tillerson of Exxon and a brief statement about XTO

http://breakingenergy.com/2013/05/30/timing-was-off-for-xto-deal-sa...

Nothing specific or short term, but the fact that Exxon is in for the long haul.

Tillerson noted that the XTO deal was predicated on a 30-40 year outlook that sees natural gas growing in importance as part of the global energy mix. The company’sOutlook for Energy: A View to 2040 envisages global demand for gas will grow by 65% between 2010 and 2040, and overtake coal as the world’s second-most widely used source of energy.

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Permalink Reply by John OBrien, landowner advocate on June 3, 2013 at 2:48pm

Searcher, Beck has acreage in most counties in eastern Ohio, but not all were assigned to XTO.  Raymond Beck has been in the drilling business since the early '60s.  They started in Ravena, Ohio, only moving into Monroe in the late 90s.

Permalink Reply by The Hiker on June 4, 2013 at 2:00am

Bob:  Unknown which of the Antero Scenarios is correct, but they indeed are the ones doing the negotiating with the landowners, and obviously have aquired the leases somehow.  They must be nervous about the status of these due to the Monroe actions (alluded to in the 10-K?) and are moving to "correct" them before Noble County gets all stirred up?  During the leasing process, I went over a map of my Township with one of the Antero guys and pointed out the potential conflicts because of the intermixed Consol, Beck, Oxford and Antero acreage.  The response was "we've worked with Consol in Monroe County", and "we've worked with Beck.  They shouldn't be a problem.  but Oxford might be".   Now, the Oxford problem is solved thanks to their buddies at Eclipse.  The same guy at a company presentation earlier had said privately that XTO had provided funding to Antero, and they "worked closely together"...but maybe this was referencing an earlier sale of some acreage in another play?   It's all pretty convoluted.  You know the details?

Permalink Reply by The Hiker on June 5, 2013 at 4:04am

Bob:  I posted the last page earlier, but here's the first 3 pages from Noble County...I'll post the last ones next :

 

 

Attachments:
Permalink Reply by The Hiker on June 5, 2013 at 5:59am

Last two from same document:

Attachments:
Permalink Reply by The Hiker on June 5, 2013 at 11:50am

I just got off the phone with another member of the Beck/XTO crowd, and he has just received a letter? contract? from Antero offering $1000/acre to do something.   I'm headed out to get the letter and take a look.  I'll bet that each one on the Noble County list has been contacted.  I'll check a few more.   Antero must have taken possession of the leases and is trying to get ahead of the curve, but it's going to be a mess before it's over.

 

If the top payout is $5900/21% (just for discussion) out of Antero's pockets for the acreage....then Antero could be expected to offer $5900-$3300= $2600/acre and 21%-18.75= 2.25% as a "signing bonus", if they are to stay in the $5900/21% range.....but I can tell you these landowners who got squat when they signed with Beck for $10/12.5% are going to want a whole lot more than that, and that's where the mess comes in.

Permalink Reply by searcherone on June 5, 2013 at 2:00pm

Bob, I am wondering if this is what I call a "take out"--a way to get these landowners out of having access to any of the benefits of the  class action suit when it reaches its conclusion.  If they accept a 1,000 per acre they would be bound to Antero. And just thinking Antero could flip it back to XTO.  And hey, if Antero has acreage at risk by HBP why do they want to acquire more risky acres--is that good business?

Also rumor has it that Beck Energy has been trying to buy farms in Monroe Co. rumor is that at least one of  them has one of these XTO/Beck leases on it, just wondering if some of the others have an XTO/Beck lease too. 

Remember in the class action suit that you posted a Donald Yonally was no longer in the suit--perhaps that was a "take out."

Gut instinct says something with that class action suit  is about to come down.   And hey, "taking out" parcels by whatever means would retain control for XTO/Beck on some acreage.  Hey, guess there is nothing like a good game of who blinks first and gives in.  Time tells all.

 

 

Permalink Reply by The Hiker on June 5, 2013 at 3:55pm

The Antero document from the neighbor is an amendment for the original Beck one page lease. States that Beck, XTO and Antero are to be known as the "party".  lol.   NO increase in royalty percentage, and contains language specifically stating that Becks ORR remain in effect.  Lots more.  6 pages legal size paper, lots of verbage.  This is from a quick read.  $1000/acre is the offer.  

They are indeed trying to get ahead of the curve.   I don't think most people here know anything about the Monroe activities, or appreciate the position they are in, and may sign just to get the $, thinking they are HBP.   I don't see the local media having much interest.    If any do sign, thats one more farm that Antero won't have to negotiate a new lease with at $5k+21% when this tactic stalls out.  A "take-out", as you say, Searcherone.

Bob, you could be right on target:  Maybe XTO is simply going to write this off as a loss and any $ Antero gives them for the worthless paper is better than nothing?   The loss would show up in the 10th decimal place on Exxon Mobil's balance sheet.   Beck is burying a black cat bone under the full moon hoping Antero will be successful ha ha....

Permalink Reply by The Hiker on June 6, 2013 at 6:10am

Nope.  None of the good paragraphs that were fought for, and included in our "Baker group" lease.  Not even language from Antero's day-to-day current lease.  It's just cleaning up the old Beck lease to the advantage of Antero, and no real scraps for the landowners.

One section after the listing of modifications to most of the Beck paragraphs is one that includes very inclusive lingo preventing Lessor from bringing action for a whole laundry list of things, including "claims related to any causes of action adjudicated by the Monroe County, Ohio Common Pleas Court or raised by the parties in the Hupp v. Beck Energy Corp. case (Monroe C.P. Case No. 2011-345)"...

I kind of get the drift from the language that Antero will purchase this lease from XTO if and when this amendment is signed, but only then.   Maybe that's the deal.   I'll bet they get near total participation unless some attorney gets involved and forms a group....

If you look at a map of Noble County, plot the wells drilled, there is a big donut hole right where most of these leases are, just N and NE of the Markwest plant.   If you had a good right arm, you could hit most of them with a rock from there.  The acreage is sandwiched between the Miley, Milligan, Coal, Consol 16, 19, 18, 30 to the west and Rubel, Norman and Yontz wells to the east.  Antero's gathering lines run right through some of the acres already.  Valuable, you say?

They should take care, because some sharp cookie might swoop in, sign up these landowners with a good lease, and then take on XTO/Beck for round #2 of Hupp.  These acres could be in the news for quite a while if that happens...

 

Permalink Reply by John OBrien, landowner advocate on June 6, 2013 at 2:53pm

Bob, "how did they handle"

They didn't have to.  The Beck/Hupp case that became class action only includes MC is what I believe to be the case.  Therefore, until someone in Noble contests it there, there is no case.  The real reason Beck lost his original case against Hupp was because of the perpetuity clause.  Do the Noble leases have this clause??

Permalink Reply by John OBrien, landowner advocate on June 6, 2013 at 4:00pm

OK Bob I see your point.  I had forgotten about the "z" post, or just didn't remember.  Long time no read.  By the way "z" is, I think Zurz, who is one of the lawyers in the original case.  I met with the firms rep in Woodsfield when this was first coming about.  All they wanted from me was 1/3 of any signing, and 1/3 of any future royalty. LOL  I wouldn't have gained much, almost nothing.

On another note.  Being drilled two years from now might increase your royalty check substantially if the price of NG goes higher!

Permalink Reply by searcherone on June 6, 2013 at 7:25am

Just sayin' isn't it mighty interesting that companies doing business in the Oil and Gas industry want landowners to sign on the dotted line for $1,000 per acre giving away their minerals for nothing, no increase in  royalty percentage, and a clause saying they give up their rights to court action based on the outcome of the case in Monroe County that is still pending.    LOL Antero, XTO, and Beck Energy must think everyone in southeast Ohio is a total dumb head or are they worried about the outcome of the Monroe County case.

Surely I believe there are ethical companies and individuals operating in the Oil and Gas world. Put some pressure on your less reliable buddies. This action in Noble County will make landowners everywhere very suspicious.

Just a dumb head landowner in southeastern Ohio saying their humble opinion.

Permalink Reply by The Hiker on June 6, 2013 at 8:42am

The offer is now up to $3000/acre.   Pretty fast escalation, eh?   Probably due to the pushback, or maybe it's just step #2 of the plan, Antero has organized a meeting for the Beck/XTO crowd Monday 6pm Nbl Community Center at the Fairgrounds.  I predict they will up the offer again and maybe throw in a few protection paragraphs and hope for lots of signatures.  Stay tuned.

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