Replies to This Discussion

Permalink Reply by Steven R. Rothenberger on October 18, 2013 at 2:48am

February 8, 2008 3year lease with a 3 year option $50.00per acre first Three years and $75.00 Second Three years with an annual $5.00 per acre rental rate, February 7, 2013 Penn Virginia refused to pay the $5.00 per acre rental and at my request sent me a release of lease. 78 Acres Harrison Twp. Potter Co.  Not lease and have not been approached to lease.  I am much smarter now, but it sure was a painful experience.

P.S. My lease's were never recorded

Realtor Joe

Permalink Reply by Jack Young on October 18, 2013 at 1:47pm

Things peaked at $2,600/acre in 2009 and 2010, and as you said, slid from there to virtually nothing in a few short years. The Marcellus was quite a disappointment, and anyone leasing now probably is looking for something else substantially more speculative. So we probably won't see those sorts of offers again until/unless someone hits a big well in the area.

Permalink Reply by Jim Jones on January 15, 2014 at 10:17am

 

 Joe, I also have property on Rt 49 in Harrison Twp. Potter Co. Not leased and have not been

 approached.  However, I was on the Landmen.net job site and came across a job listing for

 Experienced Oil & Gas Abstractors for an upcoming project in Cameron and Potter Counties.

 Ad stated candidates must live in surrounding county. This Ad was posted Oct. 2013. Maybe

 things are looking up for Potter Co. Deb.

Permalink Reply by Jack Young on January 15, 2014 at 11:38am

The Goodyear heirs were looking for abstractors to check out what they might own in those two counties, but it turns out that their Potter County rights were sold 20 years ago. I suspect that's what the ad was for. But you never know...

Permalink Reply by Jim Jones on January 15, 2014 at 1:34pm

 

  Thanks for the info. I'll keep my fingers crossed!

Permalink Reply by S Wenk on November 14, 2014 at 1:46am

Pennsylvania-Potter County   11/13/2014   15.00%   $1500   5 years   168

Permalink Reply by Janice L. Hancharick on November 16, 2014 at 8:16am

Did you also get offered $2500 AC @12.5% in Sweden Twp. by T.S. Calkins and Assoc. ... working for JKLM?  Are the numbers and reps moving around that much?

Deb is right in posting things are looking up for Potter!  The action/moves are beginning to play out like a big chess game. 

Permalink Reply by S Wenk on November 16, 2014 at 9:09am

yes. Are there better offers out there?

Permalink Reply by Janice L. Hancharick on November 16, 2014 at 11:02am

I believe there are, though not a great deal higher than the signing bonus @ this time.  One does see better royalty %'s now,  yr. terms, and renewals.  That's why a frenzy is part of the picture nowadays.  Land men have been getting frustrated, so agents like the one mentioned above have been employed, and they really are good in sealing deals for O&G companies.

A large number of Potter and McKean OGM holders have stuck together for their own benefit (numbers and clauses) for the long run.

Opinion:  Folks can hope to run fast or they can hope to run far.  Quick results or lasting results?  How meaningful should the leasing experience be?

Permalink Reply by jb379 on November 18, 2014 at 8:30am

gag me with a spoon.  maestro, please prepare for the dramatic self promotional theme song...and hit it!

Permalink Reply by Jack Young on December 13, 2014 at 9:04am

We just agreed to a 3 year renewal with Ultra on the leases of ours they assigned to Shell. The price wasn't high compared with what others were offering recently, but I've heard that budgets will be cut across the board after New Years. (And Shell has stopped taking Potter County leases for 2014 since they couldn't process any more before then.) Gas prices were already very low (you get paid substantially less in PA than you would in Texas) so oil prices down in the 50s will crimp oil and gas company cash flows even further. It's always a gamble deciding whether to sign or wait, so I could easily be wrong, but my suggestion to anyone with a renewal offer from Ultra is to take it quickly. Hopefully things will be better in three years and you'll have another chance to make a long term deal then. But it could be a long, slow three years otherwise. Just my instinct on this one, but I'm going with Ultra this time around. 

Permalink Reply by Janice L. Hancharick on December 13, 2014 at 2:56pm

On what % of your holdings are you singing the praises of  Ultra?  Getting paid less in PA than in TX ?  That sounds like comparing apples and oranges.  We even have varied "fruits" within our own state.

Many of the sites (over 2 dozen) that I monitor plus O&G professionals known on a personal basis, are saying the lull for oil producers is turning them into nat gas producers.  Gotta go where the $$$ is!

So Ultra now has what % of you AC?

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