Replies to This Discussion

Permalink Reply by Daniel Rupert on November 18, 2010 at 4:53pm

Joe, my family shares 162 acres with a partner in Benezette Twp.. We are placing our land in the 1/1/2011, global marketing program that Snyder/MDS/Knapp have put together. Please call me @312-659-4481 to discuss. I will be up until1:30 A.M. on11/19.

Permalink Reply by Joseph L. Kuhn on November 19, 2010 at 12:05am

Thanks. I'm overwhelmed at present with the activity. But will stay in touch.
Joe

Permalink Reply by Joseph L. Kuhn on November 19, 2010 at 12:02am

Thanks, I'll call today.
Joe

Permalink Reply by Daniel Rupert on November 19, 2010 at 1:47am

Joe, I'am available to discuss @ your convenience. You can call @ 312-659-4481 or E-mail me @ danielrupert@rocketmail.com.

Permalink Reply by R. East on November 19, 2010 at 7:19am

I'm curious as to why anyone would join a group or "global marketing program" that requires giving up 15 -20 % ?? I understand the concept that "more acreage may result in more favorable terms and conditions" however, arent we, as landowners, smart enough to form our own group or at least negotiate a more resonable rate?

I'm involved with a small group of neighbors in McKean/Potter totalling 4,000 acres and we've been more than capable of negotiating our own deals. Having said that, we are currently considering using a very well qualified oil and gas consulting firm at 7% and, and we're only commited for 90 days, not 1yr or even 6 months!

Negotiating with a Consultant or a mom and pop producer turned "marketer" should be taken as seriously as negotiating a lease with viable shale company.

Permalink Reply by Daniel Rupert on November 19, 2010 at 9:14am

R. East-Please e-mail me information on your group and maybe we can join forces with you along with some other property owners I know who are looking... To answer your curiousity of the wisdom of joining a, "global marketing program",these are my personal thoughts. There are 12 months of documented history of no less than 12 deals that have produced bonus payments of between $8.1K/acre and $14.1K/acre. I like the chances of the Synder deal going for $6K-14K/acre. I use the low end of $6K because the Royal Bank Canada will not receive a commission on anything less than this amount- and no bank would take on a project of this size without getting paid!{ they have been given a $2,500,000. retainer from the Snyder family to market/facilitate the deal}.The $.14.1K number is the high end and reflects the Atlas deal to Reliance earlier this year[120,000 acres for$1,700,000,000.00 or$14,167./acre]. Last week, Atlas sold 50,000 acres to Chevron for $4,300,000,000.00 or $8.1K/acre. These are real companies making real deals for real monies...no fiction here. When you look @ these numbers and then underwrite the following facts:1.)Most of the land is contigious,2.)Most of the acreage is HBP,3.) There is infrastructure in place to transport the gas4.)This is by far the largest acreage offering to date of its kind5.)With depressed gas prices, the big boys, Exxon-Mobil, Chevron, Conoco-Philips, BP and Shell are all looking to increase their share of the market in this play,6.)Reports that natural gas-refueling stations may increase from roughly 10,000 to 50,000 over the next several years7.) Honda introducing a CNG car in December of 20108.)The government giving grants to companies and municapalities to switch their auto fleets from gas to ng because of effeciency of gas mileage and less emmisions- EQT and Giant-Eagle are two examples9.)The Utica shale under the Marcellus may be even more valuable than the Marcellus10.)The final and most important to me is that there is no risk...if Snyder does not sell the acreage and therefore does not pay us $841,000. [minimum $6K minus 15% times 165 acres]or up to $1,963,5000.[maximum 14K minus 15% times 165 acres], we get our property back and are free sign with another O&G company. The land and the gas will still be there for us to develope.

Permalink Reply by Mike Flor on March 10, 2011 at 10:19pm

I'd be interested in who you got to work for 7%.  Most of the marketing groups I have contacted want too much money.  Can you email me...ktflor@nep.net

Thanks Mike

Permalink Reply by William Paris on November 22, 2010 at 12:16pm

Daniel,
I too have property in this area. From everything that I have seen with the "Snyder's" and experienced first hand, I highly reccomend staying away. The groups sound really great at first then when you read and I mean read the fine print they always end up with at least 20%. Oh they seem so nice and helpful but there is a reason they want YOUR money bottom line. You are better off to navigate and negotiate your OWN. You can get a really good 3 or 5 yr lease with the royalties to your liking. You have a commodity, you need to treat it as such and not just join up, you end up giving away a lot of your options.
This has been my personal experience. I hope that helps.
William

Permalink Reply by Joseph L. Kuhn on November 24, 2010 at 1:40am

Dan--Your phone number is always busy at any hour. May be not working properly. Call me at 703.725.7040-my cell.
Joe

Permalink Reply by Daniel Rupert on November 24, 2010 at 4:36am

Joe Please be advised AT&T fixed my problem...call me anytime @ 312-659-4481

Permalink Reply by Joseph L. Kuhn on November 24, 2010 at 5:57am

OK. Let me know of any new activity.
Best,
Joe

Permalink Reply by Bert Bankovic on November 18, 2010 at 9:56pm

I can check with Itche Chiapelli (Rock Hill) and Jimmy Betta (Windslow Hill) to see who is doing what. I'll be with all of them for buck season. I'll be sure to post any info.

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