Hilcorp Leasing in Mercer County Again

We received postcard from Hilcorp / Western Land Services last week about a "Presentation and Lease Signing" in Delaware Township on Thursday, November 14th 2013. Time if 4PM to 8PM. Location is Delaware Township / Civic Building.

We are still unsigned, due to a previous shallow well lease, that we are now free of. I called Western Land Services the next day and was told that they were again signing leases. I asked about the current offer, and was told $1500 acre and 17% royalties. I asked why so low, and the reply was that they have no competition in the area. I told the lady that we were not interested unless they match previous offers. She was polite and said that we should at least consider attending to hear what they are planning. She did inform me that they have plans for Pymatuning Township in 2014.

Anyone else hear anything?

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015334grltd9mPermalink Reply by 015334grltd9m on November 13, 2013 at 5:00pm

Dan ,

Look at the pipe plans on Mercer Cryogenics post, this is why they are leasing again, patience my friends.

Permalink Reply by Dan Scott on November 14, 2013 at 6:16am

We missed out on the first round of leasing and do not want to get left behind. We will not settle for what they are currently offering either.

If the well planned for the "Miller land " in Pymatuning goes through, we should be in that drilling unit as we are about 1 mile from there.

I am hoping that "they", will come to us.

 

 

Permalink Reply by james on November 14, 2013 at 6:48am
Yeah, if people say no they will raise the prices. Why sign for less then half of what they were paying last year? We signed last year with Hilcorp for $3500 an acre and 18%. The only reason to even consider a low offer like this is if you were in financial bad shape, IMO.
Permalink Reply by james on November 14, 2013 at 6:57am
Other companies should move into this area, the gas is here, they are just trying to lowball impatient landowners. $1500 is to cheap compared to last year, even if they were offering $2500-$3000 would be fair, but $1500 is taking advantage of landowners IMO.
Permalink Reply by Dan Scott on November 14, 2013 at 7:27am

Agreed. Competition will drive prices up. $1500 is a slap in the face compared to the $3000 offers of last year.

 In the spring of 2012 we had several offers but were still stuck in a shallow well lease. We were able to get released from that lease, and signed a new one late in 2012. Unfortunately they kept us waiting for 180 business days, time lapse and never paid rendering the lease void.

Permalink Reply by james on November 14, 2013 at 12:33pm
I also think Western Land is wanting a bigger piece of the pie, they have been doing most of the leasing for Hilcorp and I think they have gotten enough calls from land owners wanting leases that they relayed this info. to Hilcorp and both decided to start paying landowners a smaller lease so they both can keep more money. I wouldnt sign for $1500, there are still companies paying $3000 plus in the area including Edgemarc Energy, Halcon, and Shell. They should be paying more now then last year since several wells have been drilled and they now have proof there's lots of gas/oil in the area.
Permalink Reply by james on November 14, 2013 at 12:37pm
I hope someone post on here how the meeting goes with Hilcorp/Western Land tonight, I hope most landowners don't sign a lease for $1500, I think they will be making a big mistake.
Permalink Reply by Dan Scott on November 14, 2013 at 4:18pm

I went to the meeting, but too late for the presentation. I spoke to them about what their plans are. The plan is to lease remaining properties in the area that did not sign up during the previous round. This may be the last chance for some. The project manager was clear that once they have the properties unitized, it is final. They are offering $1500 and 17%, which is obviously low.   

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