Replies to This Discussion

Permalink Reply by Philip Thackray on August 18, 2014 at 1:46am

Thanks DMS that is good information.

Is Doug Kimmey still the contact guy for BLCG?

Phil

Permalink Reply by DMS on August 19, 2014 at 7:07am

I think once the leases were signed, the BCLG pretty much dissolved, but Doug was the primary POC up until that point.  Without going into the details, we signed for 18% with no deductions.  There were lease renewal and HBP details as well... It is a pretty solid lease agreement.

Permalink Reply by Bill on August 19, 2014 at 5:26pm

That's exactly the deal I got too, and it's a good one.  I think we were all fortunate to "catch the wave" of the bigger bonuses and no deduction clause.  Doug and the others who pushed the boundaries helped us all!

Best of luck to all in Butler County!

Permalink Reply by Trapper on August 18, 2014 at 1:47am

I went it alone with Shell and have a nice list of addendum. 15% no deductions clarified strongly in one addendum. I just preceded the $3250/acre but still got $3000/acre with a same terms option to re-lease at or prior to lease term. I am happy with what I got and found them to be good to deal with. I haven't heard anything bad said about Rex either and anticipate fair dealings with them.

Permalink Reply by cheliped on August 18, 2014 at 2:17am

Do you guys think REX will renew shell/east leases that are getting ready to expire?  Also, when do companies start to renew leases?  I am asking because my shell lease expires in 2015. 

Permalink Reply by Philip Thackray on August 18, 2014 at 2:25am

Trapper,

No deductions is great. 

Rex is all around me here in Forward Township, Butler County, PA.  I haven't heard many complaints.  Of course, the deductions are high - 20%to 25% reduction in royalty - but that is same for XTO and I suppose any wet well operator.

Phil

Permalink Reply by RB on August 18, 2014 at 3:32pm

I am curious to know from anyone currently receiving royalties from REX what your percentage of deductions amount to, at least on the average. Thanks.

Permalink Reply by Philip Thackray on August 19, 2014 at 12:04am

I have seen months of both Rex and XTO royalty statements.  The deductions are between 20% and 25% at current sales prices.

Phil

Permalink Reply by Trapper on September 14, 2014 at 5:32am

I am from Lawrence County but was on Brownsdale road this weekend and I counted 4 pads between route 68 and route 8. Impressive! Couldn't get a look at what company. Are these Rex by any chance?

Permalink Reply by Philip Thackray on September 14, 2014 at 6:21am

Hi Trapper,

Actually there are six well pads on Brownsdale Road, Butler County, Forward Township, PA.

I live on Brownsdale road.  From east to west, Rex Powell pad, XTO Gill pad, XTO Marburger pad (I'm in that unit), Rex McElhenny,  Rex Rape and to the north near rt 68 the XTO Vicnor Farms which is a vertical to the Marcellus drilled by Phillips (before XTO bought them) to hold the property.

Busy place!

Phil

Permalink Reply by Trapper on September 14, 2014 at 7:04am

Thank you Phillip. You appear to be in the thick of things! I haven't been out that way for years and was impressed to see that many pads. We long for the day our area is developed! Thanks again and continued success to you!

Permalink Reply by Philip Thackray on September 14, 2014 at 8:11am

Oliver Perry, Matthew, DMS, Bill, Trapper,

Doug Kimmey sent me over a whole package relative to the BCLG leases with Shell.  I forwarded that information to the guys down here trying put a land group together over in Adams Township, Butler County, PA

Thanks everyone!

Phil

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