ECLIPSE RESOURCES AMENDMENT TO CONTRACT EXTENSION
I HAVE BEEN CONTACTED BY ECLIPSE ABOUT AMMENDING MY CONTRACT ALONG WITH SEVERAL OTHERS IN MONROE COUNTY OHIO. MY CONTRACT IS SIMILAR TO THE SEOLA CONTRACT DONE BY JENNIFER GARRISON. THEY WANT TO PAY ME IN ADVANCE $1,000 AN ACRE TO CHANGE MY CONTRACT TO 5 -0NE YEAR EXTENSIONS INSTEAD OF THE $5,000 AN ACRE FOR THE ONE TIME RENEWAL. MY CONTRACT DOES NOT EXPIRE FOR ANOTHER18 MONTHS. I UNDERSTAND WHY THEY WANT TO DO THIS, BUT THE AMMENDMENT IS SEVERAL PAGES LONG. I LIKE THE CONTRACT THE WAY IT IS WRITTEN NOW AND I AM AFRAID THE WORDING CAN CHANGE OTHER PARTS OF MY CONTRACT. I AM IN CONTACT WITH MY LAWYER TO DISCUSS THIS, BUT I WAS WONDERING WHAT OTHERS IN MONROE COUNTY SIGNED WITH ECLIPSE THINK OF THE WORDING OF THIS AMMENDMENT.
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Replies to This Discussion
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Permalink Reply by Olive Sue on
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Many scenarios could be at play. Be aware Eclipse is for sale. beware if they do not sell and cannot withstand the major downturn in prices and should file bankruptcy, what happens to payment and the time your lease might be tied up. I hope your attorney advises you well.
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Permalink Reply by Soundcraft on
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Eclipse for sale?
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Permalink Reply by Olive Sue on
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So I have been told they are listed with Morgan Stanley? I would like to believe it is not so!
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Permalink Reply by David Allen Lilly on
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I was in the NY group that had bad dealings with Carrizo, when they repeatedly lied to us, although if we had better leadership all of our troubles with them could have been avoided.
But I do think Carrizzo and Eclipse are different because Eclipse is very over-leveraged, running on the fumes of other peoples money and needing more of other people's money to keep going.
Carrizzo may operate at the height of dishonesty, well they do actually, but I remember researching them without the red flags coming up similar to the situation I just described with Eclipse.
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Permalink Reply by David Allen Lilly on
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Eclipse is trying the same thing here in Guernsey county, although I have not talked with anyone who has not rejected the notion out of hand.
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Permalink Reply by searcherone on
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Holland Services landwoman said directly to me on Saturday that Eclipse has money to last another 18 mos, now who knows if that is truth or not or pressure to sign the amendment, but their finances are hurting. One day last week stock was 85 cents, just a little over a dollar now.
And in a downtown oil and gas situation having these amended leases would be more attractive to a buyer and just guessing EXXON/XTO would be a great potential buyer as much of their Beck Energy leases lie next to Eclipse leases in the southwest portion of Monroe County. Just my humble guess.
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Permalink Reply by Barry D on
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searcherone,
You have love how these people speak out of both sides of their mouth.
They ask you to take payments over 5 years. Then one of their representatives tells you the company only has money for 18 months.of cash left.
Sounds as though the offer to amend the lease only is a benefit to a company in financial trouble.
Perhaps I am missing something, but why would a land owner agree to the amendment?
What is the benefit for the landowner?
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Permalink Reply by Rick S. on
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I have a lease with Eclipse that is due for renewal in October of this year and have not heard a thing from them, the land is in Noble County on the border with Monroe County. Anyone from Noble heard anything?
BTW, several years ago I got a letter from Eclipse that they have sold a 70% interest in my leases to Antero???
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Permalink Reply by luke s on
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THE ONLY BENEFIT I SEE PERSONALLY IS THAT I GET TO KEEP MOST OF THE CONTRACT LANGUAGE INTACT IN CASE THEY DO DRILL, OR SELL TO ANOTHER COMPANY. I WOULD ALSO GET ATLEAST ANOTHER THOUSAND DOLLARS AN ACRE IF THEY DO GO UNDER. WHAT IS THE DIFFERENCE IF THEY GO BANKRUPT BETWEEN ME SIGNING THE AMMENDANT OR STILL BEING UNDER THE CURRENT LEASE FOR THE NEXT 18 MONTHS AS I AM NOW? AS FAR AS ANOTHER COMPANY BUYING THEM OUT I AM SURROUNDED BY THE BANKRUPT MAGNUM HUNTER NOW WITH STATOIL CLOSE BY. JUST SOME MORE INFO, I AM NOT IN THE WAYNE NATIONAL FOREST AREA.
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Permalink Reply by Barry D on
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luke s,
I suppose there is an argument to be made for agreeing to the amendment. As you point out, you get to keep the remainder of the language in your lease. In a bankruptcy proceeding anything could happen to that lease. Also, the lease could be tied up in the proceeding and the term extended until the bankruptcy ends all without bonus extensions payments being made.
Further, if you agree to the amendment and there is a sale, the new company would be required to abide by the terms of the lease.
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