Good news for Butler County mineral owners, both leased with SWEPI and unleased. Read the full story here:

http://ir.rexenergycorp.com/releasedetail.cfm?ReleaseID=865896

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So what effect will this have on the possible cracker plant in Beaver?

None

I am in Lawrence COunty , leased to Shell and , I believe , a part of this deal.

Isn't Rex a pretty good company to deal with? It is my understanding they are very active in Butler County.

Rex has 72 of the 150 wells in Butler County, as of December.

Oliver, this is tremendous news! I see the Rex drill sites in my daily travels...it would be nice to welcome them to northern Butler County!

Look at the price being paid - deduct the wells and reserves, and this values the leases at something close to $400/acre. That's certainly not an endorsement of the area's potential. The idea that nobody was willing to pay more is pretty worrying.

Perhaps it's nothing more than none of the other companies who already have a vested interest in Butler County were willing to pay $120 million in Cash...  Nothing to worry about as far as I am concerned...Shell has been unloading assets all around the Globe since their new CEO took over earlier this year (i believe that's when)!

The price may also be based upon the percentage of leases that will need to be renewed with additional bonus payments in the next couple of years.  These extension payments may also be higher than current market standards so in some cases this purchase provides them with the first position to renegotiate with the landowners on the amount of an extension fee. 

There ya go, Oliver!  Great news. 

SWEPI to Rex looks like good news indeed!

What was/is the name of the landowner group that negotiated with SWEPI for some of the leases that Rex is acquiring?  Was there more than one landowner group?  Was there a common lease and if so, is a copy available?

Phil

Matthew,

I friended you.  I have a 10 acre parcel in Adams Township.  A Landowners group was formed and we are working on a common lease.  I'm also trying to get a copy of the ALOV lease (Ohio) that I hear is quite comprehensive.

Was BCLG the only landowners group up your way.

Phil

Matthew,

I knew that you lived out of town.

I appreciate your help.

Thanks again,

Phil

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