Chesapeake Offer

The deep Rogersville Shale is only one of the many different “levels” in the Rome Trough. It does seem though that it is the play that is drawing the most interest from operators at the moment. As far as potential for lease bonus $ and royalty, that’s a hard one. Most of the time it looks like once a big play is found and actually producing, that is when the $ and royalty start to rise as more operators look to stake a claim on the activity. Right now I look at it like they just starting the “let’s look and make sure what we think is there is there.” period. That is my thought on it. And I am by no means an expert. You might want to check with your neighbors between you and the existing pad you are talking about to see if they have been approached and by whom.

Brian Mollett said:

Thanks for the info kyoilgas. I am pretty sure there is already some activity just down the road about 2 miles from where I live. There is a tank with a NYTIS sticker on it and oil derek has been moved in there, but does not seem to be pumping yet. I have been looking at some maps and looks like this area is directly in the Rogersville Shale area and I have read some of the articles you had posted in other groups here. In your opinion, what do you feel the area has the potential for lease bonus and royalty %?

kyoilgas said:

$200.00 - $250.00 per acre is what most are offering in the area. This will stay in that range until a proven happens in the area. Some will offer the gas tap for a home and some will not. All on the operator. Oil or natural gas makes no difference in the lease per acre or % royalty to most operators in what they are offering. 12.5% before deductions is the norm right now, but have heard of more. If they have told you they are not interested in natural gas then have them write the lease for oil only and see what they say.