Have the gas & oil companies lost interest in leasing land?

I have over 70 acres in western Carroll County with no current gas or oil lease. I called Rex Energy and Chesapeake about leasing and they said they are not interested. I am curious on why they are not in the market at this time.

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Permalink Reply by Joseph-Ohio on September 19, 2013 at 6:26am
'Putting investors off' doesn't make much sense to me unless you're making so much money that it doesn't matter if you have investors or not.
Perhaps that's the happy place they enjoy residing in.
Hard to imagine anyone being so well off !
Permalink Reply by Joseph-Ohio on September 19, 2013 at 12:32pm
'cynic'

As in: "A person who believes that people are motivated purely by self-interest rather than acting for honorable or unselfish reasons."

Yeah.

That's me.

The shoe fits.
Permalink Reply by Joseph-Ohio on September 19, 2013 at 1:27pm
Nice analogy.
Bottom line however is a 'delay of our economic recovery'.
Not a good time for a 'delay of our economic recovery' the way I see it.
Permalink Reply by Finnbear on September 20, 2013 at 1:20am

Reality is that there are simply not enough rigs in existence to drill the acreage currently under lease before the leases expire. Add that to the lack of required infrastructure (it is being built, but it takes time and money) and here we are today. If you can't easily and reasonably get your product to market, you can't produce it profitably. It really is not a mystery.

Permalink Reply by Joseph-Ohio on September 20, 2013 at 2:47am
Still intuitively not adding up from my perspective.

If these investments are made based on a Return (ROI) at some unknown time in the distant future (pending rig availability, infrastructure development, politics, etc.) what has seemingly 'stopped the music' ?

Building processing plants in PA. (not in Ohio) and then watching, hearing and reading about how politicians there want total moratoriums against hydraulic fracturing and natural gas & oil drilling / development doesn't make much sense to me either.

The list of things that make no sense and remain mysterious to me in particular is longer but I'll stop here as I think you get my drift.

Drilling / Development seem to have taken a back seat to tying up and flipping the mineral rights.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 20, 2013 at 3:54am

"If these investments are made based on a Return (ROI) at some unknown time in the distant future (pending rig availability, infrastructure development, politics, etc.) what has seemingly 'stopped the music' ?"

Nothing has stopped the music.  The drilling activity is still climbing higher every quarter.  We're nowhere near the peak yet.  But there is a finite amount of capital to invest and a lot has already been poured in.  CHK's new CEO is firing thousands of employees because they are bloated and dragged down by crushing debt.  No, one more lease won't break their back but at some point they have to say "enough".

Permalink Reply by Joseph-Ohio on September 20, 2013 at 5:10am
Leasing in my geography although our land is located in the northeastern tier and in the Ohio Utica Point Pleasant 'Fairway' has stalled / become stagnant.

That's where I'm coming from when I write about the music seeming to have stopped.

Action (music) in Crawford County PA. to our east and in Trumbull County OH. to our south.

Hard to figure out why - hence my cynicism.
Permalink Reply by martin on September 19, 2013 at 2:30am
Jefferson county was dead for two years. No one wanted any part of leasing after the first big rush two years ago. Many people including me thought we missed the boat. The offers currently by two different companies are now 7200-20. Be patient.
Permalink Reply by Hunter on September 19, 2013 at 4:36am

I appreciate your responses. It always nice to get information when you have to make a big decision.

Permalink Reply by Finnbear on September 19, 2013 at 5:50am

Good information to find out would be "Who has leased the neighboring properties to yours?". That company (or companies) will most likely be the ones who end up needing your acreage if and when they do drill in your neighborhood. They are who you need to market your acreage to unless you have hundreds and hundreds of acres where one company could drill multiple wells only on your land.

Permalink Reply by Joseph-Ohio on September 19, 2013 at 6:06am
That's good advice.
The only fly in that ointment I can detect would be if the interests holding the acreage want to sell / flip their leases or JV more than they want to develop them.
That's been written pertaining to a couple of the big companies holding leases on large blocks of acreage quite a few times now on these pages.

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