Negotiating a New Oil/Gas Lease

Mike Raich · 2019-11-30T14:21:55Z

My sister and I each own 1/6 of the oil and gas rights to ~102.6 acres in the Lincoln District of Marion County. Our lease from Stone Energy twnr o EQT when Stone was absorbed by Talos Energy, We do not know what company(ies) own or lease the remaining 2/3 of rights on the acreage. The original lease with Stone paid at total of over $1,500 per acre for that period. So the total to me for the 5 year period would be 102.6 acres x $1500/6 or $24,650. The lease allowed just one extension for a term of three year. Using the $1,500 figure above for 5 years the extension cost works out to be $300 above per acre per year. My extention payment for 3 yrs then would have amounted to 102.6 acre at $900 ($300 per year x 3 years) $15,390. Correspondence from EQT at the end of November, 2019 shows that drilling has not been undertaken on the property mentioned. What kind of offers seem possible for our oil and gas rights for a new lease effective 3/1/2020? EQT has not contacted me or my sister about generating a new lease. We expect to hire an attorney to locate potential buyers and negotiate prices. We do understand that Marion County possesses a good deal of “dry” gas which typically brings lower prices than “wet” gases found elsewhere in WV. MSR

West Virginia Mineral Rights Marion County, WV