Lawrence County, Kentucky

I have 29 acres in lawrence county and have been offered a lease of $250.00 an acre and 12.5%

Royalty. Does anyone Know about the potential of this area ? this is all new to me and I am not confident at all that I should sign a lease. My sister and I have agreed to the terms, but not yet signed. I checked the plat map and found and at least 3 competitors to the company offering us a lease had already secured agreements with other land owners. I'm not sure what this means to us, The landman has said they are leading the way in this area,that they intend to drill deep wells up to 16000 ft, I also asked if they sell their leases and was answered that they never sell their leases.

Any information on the area or what were getting into would be appreciated.

Thanks !

Take your time and do your research. You are already doing well by what you have found out. Various landmen are offering leases in Lawrence and Johnson County. Gulfland App. Energy, Exterra, Terra Nova. Have heard of amounts for $ between 100 and 500 an acre.

Check out this site, gomarscellusshale. Over 600 pages of threads and groups. Also local papers on line, discussion forums etc.

The real play will be the deep Rome trough. There are 16 oil and gas plays in the trough. Google: Rome Trough Map Kentucky. Bonus per acre has already risen from $80 to over $200 depending on the landman and who they are leasing for. We have been approached by Gulfland Appalachian Energy at $200 per acre, 12.5%, 5yr with 5yr option. No way would I sign that. 5yr and 5yr option is an immediate RED FLAG. And the bonus amount is too low.

Here is an example of a good lease: http://www.alov.us/. The lease is at the bottom of the page. S.U.R.E. lease 2012. Alov is a landowner group in Ohio with over 200,000 acres leased using this .

Some links for ky info:

http://oilandgas.ky.gov/Pages/Welcome.aspx

http://kgs.uky.edu/kgsweb/DataSearching/oilsearch.asp

http://www.lrc.ky.gov/statutes/chapter.aspx?id=38944

http://theuticashale.com/shale-plays-established-emerging/

http://archive.constantcontact.com/fs169/1107894918401/archive/1116...

(Half way down the page on the this page is info on a look at the Rome Trough)

More general info:

http://www.mineralweb.com/owners-guide/lease-proposals/oil-and-gas-...

http://www.mineralweb.com/owners-guide/lease-proposals/oil-and-gas-...

Educate yourself on pooling, forced pooling, unit size, wellhead price, market price, pugh clause. It all matters in the lease you sign. Again, search the gomarcellusshale site. Even though KY is not in the Marcellus shale, there is a lot of good info there. Search on the site for Rome Trough, Wayne county , Berea Sandstone

Good Luck

I apologize I could not continue the discussion last week, However I appreciate all the information you have provided. It does appear from what I have been able to find that the area looks promising, still not sure what it really means , I would like to get excited and hope it might help with retirement someday, I guess I will just keep an eye on it and maybe in time it will begin to turn into something meaningful, either way it's fun to be a part of it. This is a part of a property my great grandfather owned in the 1800's, I can only imagine what he would think knowing we were looking for oil today.

Thanks again !



kyoilgas said:

The real play will be the deep Rome trough. There are 16 oil and gas plays in the trough. Google: Rome Trough Map Kentucky. Bonus per acre has already risen from $80 to over $200 depending on the landman and who they are leasing for. We have been approached by Gulfland Appalachian Energy at $200 per acre, 12.5%, 5yr with 5yr option. No way would I sign that. 5yr and 5yr option is an immediate RED FLAG. And the bonus amount is too low.

Here is an example of a good lease: http://www.alov.us/. The lease is at the bottom of the page. S.U.R.E. lease 2012. Alov is a landowner group in Ohio with over 200,000 acres leased using this .

Some links for ky info:

http://oilandgas.ky.gov/Pages/Welcome.aspx

http://kgs.uky.edu/kgsweb/DataSearching/oilsearch.asp

http://www.lrc.ky.gov/statutes/chapter.aspx?id=38944

http://theuticashale.com/shale-plays-established-emerging/

http://archive.constantcontact.com/fs169/1107894918401/archive/1116...

(Half way down the page on the this page is info on a look at the Rome Trough)

More general info:

http://www.mineralweb.com/owners-guide/lease-proposals/oil-and-gas-...

http://www.mineralweb.com/owners-guide/lease-proposals/oil-and-gas-...

Educate yourself on pooling, forced pooling, unit size, wellhead price, market price, pugh clause. It all matters in the lease you sign. Again, search the gomarcellusshale site. Even though KY is not in the Marcellus shale, there is a lot of good info there. Search on the site for Rome Trough, Wayne county , Berea Sandstone

Good Luck

While bonus $ amount in a lease is nice, the money is in royalty % .Be careful of post production cost wording in a lease. In the long run the terms of the % and iron clad wording in the lease to provide a true % is essential.

Group set up for Lawrence county http://www.mineralrightsforum.com/group/lawrence-county-ky-oil-gas