Replies to This Discussion

Permalink Reply by jb379 on May 16, 2011 at 5:03am

It sounds like all of the group's eggs are going into the current wells being drilled basket.  What happens if the local wells that you say are currently being drilled do not pan out?  It would be great if the wells turn out to be monsters because all of us landowners will win.  I have looked into numerous groups, but have held off joining any to date because every group I have talked to did not have a good plan in the event local wells turn out to be duds.  What is the Keystoner contingency plan?

 

JB

Permalink Reply by Daniel Rupert on May 16, 2011 at 6:45am

Yes, EQT has the big basket in the 555 corridor...I saw this coming 3 years ago and there was nothing I could do but watch it unfold and stay away from signing. I know landowner's that signed for $50./ACRE in 2008, $500/ACRE in 2009, $1500./ACRE in 2010, and $2K or2.5K/ACRE this year [All@ 12.5% or15% Royalty ]. The numbers our group are shooting for are $3-4K/ACRE and 16-18%  Royalty. I do not have a crystal ball but my educated guess is that EQT is spending a fortune in this area for a reason...to make money!!! I have spoken to many knowledgable people the past three years...this IS the next hot spot! I'am an optimist by nature but this optimism is fueled by lots of education and information. Best Regard's...dr555!

 

Permalink Reply by Daniel Rupert on May 16, 2011 at 7:53am

I would love to hear about another basket...I have called dozens of small and large companies...none have an interest in this neck of the woods...Looks like Snyder/EQT are in bed and control this area and there are no other options @ this time...please advise if I'am incorrect. Best Regard's...

 dr555

Permalink Reply by KD Jones on September 15, 2014 at 4:52am

I have been looking for others who have signed leases with any company in the Benezette/ Elk County area after 2005. I would appreciate any contact information I could get. My family has a 650 acre lot and we are looking to lease the gas rights.

Permalink Reply by Mark Reefer on May 16, 2011 at 2:53pm

For those that have signed with Snyder Bros. What kind of offer should they expect from EQT for their Utica rights?

Permalink Reply by Chad Ramsey on June 5, 2011 at 3:37am

slow down, slow down.  You seem to be counting your eggs before they hatch.   Typically, the gas company will not deal with individual land owners such as yourself.  They are looking for large tracts, and thus why Snyder Brothers is in the loop.  If Snyder Brothers is getting 3k per, and Snyder Brothers is one of the biggest well producers in Pennsylvania, chances are this is the going market rate.  Unless you are representing a large acreage plot, 640 and up...your looking to deal with a hired landman up front.  If EQT was willing to pay muchj more per acrea, Snyder Brothers would be selling at much more per acre.  

 

Its good to stand your ground, and not take a low up front offer, its also smart to reserve other formations for future, however when you go outside of the going market rate for land in your area, your just going to stall the process, and or drive the rate back down.  Everyone thinks that if they hold out long enough they will get "big money,"  until their next offer is lower(yes its happening).  Too many people that are getting nothing for their surface acreage now, are happy to get a few thousand per.

 

Good Luck 

 

 This is very common practice, and you will learn very quickly that this is how the business is ran. 

Permalink Reply by Daniel Rupert on June 5, 2011 at 4:40am

Chuck, I'am no expert but I'am well educated and well versed on what these shale plays are all about. I have turned down $5/Acre offers[5 years ago] all the way up to $2,750./Acre offers[6 months ago]. You are correct about the offers from Snyder going down. That does not mean our property is not worth more to other companies...and thats exactly what I told Snyder, and that is why we formed our Landowner's Group. I have spent hundreds and hundreds of hours with landmen, attorneys and O&G management...By the end of this week we hope to have a good deal for our group in place. If that does not happen, by the end of the year we will have a good deal in place, etc.,etc.! This business is ran like any other business...for profit...the O&G's like to buy low and sell high...just like people buy houses and stocks low and them sell them @ higher prices for profit! The commodity we have under OUR property is VERY valuable and we will manage it accordingly. I have a good friend who just signed for 2K/ACRE on 250 acres or $500,000. I'am not so sure he will be happy when he finds out that he may have left a ton of money on the table...time will tell...none of us have a crystal ball...I wish you luck with your land1

Permalink Reply by Robert Davis on February 25, 2014 at 4:03am

Dan,It seems like activity is dead in Elk County along Rt 555. Is there any production update on the Caledonia well? Also heard there is a Benezette well. Any production update? 

Permalink Reply by Daniel Rupert on February 25, 2014 at 4:43am

My sources tell me that EQT shut in the Caledonia wells...they are keeping the test results close to their vest, which can be expected. I heard there was drilling in Beneztte...unfortunately, I have no information to share. My personal opinion is that until required infrastructure is in place, and pricing of NG rebounds, that the 555 corridor in Elk County will be one of the last areas to be drilled on an extensive basis. Just my humble opinion...Take care and good luck!