Lease Question

So I have 80+ acres in Monroe county OH  which was originally leased with Gulfport which they then transferred over to EdgeMarc.  EM let the lease expire this past September and I'm currently in the middle of negotiation of a new lease with them. I'm hesitant re-sign because they no longer will include a vertical or horizontal pugh clause.  My concern with not having the horizontal pugh clause is that they can basically include a few acres in a unit and essentially lock up all of the acreage.  Looking for insights from anyone with a similar lease issue or dealings with EM.

Views: 390

▶ Reply to This

Replies to This Discussion

Permalink Reply by Ryan Gadworth on November 21, 2018 at 12:16pm

I would hold out. I haven't heard much about EdgeMarc lately and I believe they only have a small footprint in Ohio right now. If they are in the beginning stages of putting a drilling unit together they may be more likely to offer a pugh clause several months or a year or two from now. 

Permalink Reply by TreeMom on November 21, 2018 at 12:58pm

Also lapsed by Gulfport in September and agree it is a bad time to re lease and would not do so in any case without a Pugh clause. Utica has too many DUCs now but that will change.

Permalink Reply by james on November 21, 2018 at 2:39pm

Yeah at this point might be better to hold off for better terms. Edgemarc isn’t that great.

Permalink Reply by EV on November 21, 2018 at 2:44pm
That’s my gut feel.... appreciate the insights! Unfortunately they seem to be the only game in town where we are at. No rush...

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service