British Petroleum, via landman from NAC, offered $350/acre and 1/5 royalty and five years in Stanley Survey Southeast of Huntington. After I let him know it wasn’t my first rodeo, he increased offer to $500/acre.
Five years is too long for a lease. They need to get in and drill or forget about it. Three years should be lease term.
I know there is oil and lignite coal in this area and am not inclined to lease at that rate. I’ve got oil leases in other counties for that much per acre.
Landman trying to rush the lease, says BP is only game in town and if I don’t go with them, then I’ll never see my property leased.
Anyone interested in forming a group to discuss this - maybe meet for coffee once a week? My friends did this in Louisiana and formed a coalition and ended up getting $20k/acre lease.
Not sure, but it basically said the exploration project was cancelled. I also think someone will fill their shoes. The gas pressure is crazy high here.
BP did not leave due to lack of rock quality but for other reasons. My guess is whoever replaces them will be well capitalized to develop the area. In the meantime, gas prices are really weak, so minerals remaining in the ground may be best to the ultimate PV of the play.