Update on renewal from Ascent
Sorry to start another page for this update but I cannot find a place on the other sites to reply??
Just so anyone new reading this understands what I am about to write, here is a short synopsis of what I am referring to.
Our lease , with Ascent is up in Oct. of this year.
A company called Purple Land Management contacted my brother in Feb., there are 3 of us on the lease, and offered $1,000 and acrea of a one year lease.
Came to the house without calling first and my sister-in-law was having a spinal operation the next day or so, and my brother did not have the time to really talk.
My brother told him to come back and he did about 3 weeeks later and the offer had gone down to $500.00 for a year lease.
Anyway, Dustin from the Purple Land Management contacted my brother, a few days ago, and informed him that another company, Halo, would be negotiating our lease.
He would no longer be involved with us.
The guy from Purple Land said he has too many other leases throughout Guernsey County to take care of ours??
Is anyone familiar with this Halo management?
Told my brother Halo would be contacting him in the near future.
Will keep y'all informed about this conversation.
Should be interesting.
nc man
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Replies to This Discussion
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Permalink Reply by Ohio Brett on -
Buckets,
It sounds like you are a Landman, or former Landman, yourself, based upon your comments in these discussions. Just a hunch.
Also, I said that they were probably guys who left Purple themselves. I think this pretty much insinuates that they picked up a contract or two based on their experience with Purple, and the knowledge they gained in their dealings with Ascent's paperwork and parameters, etc.......therefore, my "hired guns" comment. Clearly, they can't get the job done, regardless.
Thanks for the insight though.
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Permalink Reply by Buckets on
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Good catch Ohio Brett. I haven't worked in the industry for at least 10 years, just too volatile of a career for me. Still curious about what's going on since I own some property in Ohio so this site is a big help in getting some insight. I usually just like to read but every now and then I will make a comment if I think it will help.
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Permalink Reply by Doc on
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We also told Purple we were not interested in their offer. They did want to know if we had a counter offer. I like the current terms of our lease. We see the mineral rights as a long term investment. For us, there is no rush to settle for less than our current contract. Especially since royalty payments will be a fraction of what they would be in a better O/G market.
BTW, it is interesting that all of the O/G companies are offering similar agreements. Collusion or coincidence?
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Permalink Reply by David Allen Lilly on
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Probably not either, I would call it economic considerations.
When the first guy showed up here I was offered $10 an acre. The upfront money and the lease terms gradually improved but not until it became necessary to do so because there were no more bites at the lower levels.
Same way when Eclipse bought out Oxford. At first they merely requested landowners sign addendums allowing them to pool the leases in to larger Utica sized units.
Probably some did but most said rightly "what's in it for me" ?
At that point the dance started anew, sign who you can to the addendums and then raise the stakes trying to sign the rest.
In the end they don't have much choice but to either pay you per lease terms OR let the lease expire.
If you have some less than favorable lease terms it might aid in re-negotiating those terms, maybe not.
As commodity prices improve slowly the drillers will be less hung up on re-leasing.
In a way the drillers brought this on themselves, I saw the same thing 10 years ago in the housing market where builders refused to slow down to economic restraints and crushed their own industry by flooding the market with empty, speculative custom homes until no one was building anything anywhere.
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Permalink Reply by David Allen Lilly on
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Sounds like a scripted negotiation on the part of the producers and their land men.
I think landowners really hold the cards here, they don't have to agree to the terms and I would be VERY CAREFUL signing on to a new agreement.
When faced with the same situation in the nearer future I intend to tell Eclipse (they traded for my lease with Antero) that they can either pay the whole thing up front, according to the lease I signed, or break it into 5 installments paid out in full according to my lease terms.
As of right now I see no reason to give them my money when I have so many questions about their practices regarding royalty payments versus lease terms.
I wonder what they will do ? My guess is you get the check because it is the best option they have available, allowing the lease to expire probably is a loss for them. Will they force pool you eventually ?
Maybe, but I admittedly don't know what that looks like.
Thank you for the sharing of information, it is what we need more than anything.
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Hello All!
Wanted to update y'all and keep you informed of our recent communication with Ascent.
My brother, Tom, heard from Halo yesterday.
Halo rep, again, stated that nothing had changed with Ascent's offer($500.00 an acre for a year lease) and asked if we were still firm(we previously refused the offer)?
My brother said,yes, I am firm and both of my brothers, too. There are 3 of us on the lease.
We are just saying -----NO!
Halo rep said he may be calling again. My brother said, if not, we should be receiving a certified letter in the mail by the 24th of this month of Ascent's intent? He said, yes.
Our lease expires in Oct. '16.
So there's where we stand with Halo.
Very much enjoying everyone's comments on this subject.
Thanks for sharing your thoughts.
nc man
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Permalink Reply by bo boboski on
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Well, good luck! Hopefully,the day your lease expires,you receive the $5000 per acre renewal for another 5 years. If not .Get a release and just wait.You are in a high percentage OIL location,so when the price goes up, somebody will definitely be interested.
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Permalink Reply by Jefferson on
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Yes, Halo guy called me last week to reconfirm we said no to their offer. He said he or some of the other guys may be calling me. He said he plans to call me weekly. I politely said the answer is not changing.
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Permalink Reply by Jefferson on
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Had a call from Halo guy that was working with us. He said he was moving on to another area to work. Someone else will be calling in a few days.
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Hi y'all!
My brother heard from Halo, again, last week,for the third time,and the rep asked my him if he had changed his mind and would accept Ascent's offer for $500 an acre for (1) year?
My brother responded no and that ended the conversation.
Before he hung up, though, my brother asked why he had not received Ascent's paper of intent to release us or not.
The rep said he knew nothing about that.
So that is what is happening with our Ascent lease renewal situation.
Enjoy your spring up there!
nc man
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Permalink Reply by bo boboski on
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thx for the update.
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