Washington County, PA Oil & Gas Discussion archives


#1

Washington County, PA oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.


#2

Welcome Rick! I think that an drilling activity continues throughout various parts of Washington County such as in the Hickory/McDonald area there will be much to dialogue about. We live in Cecil Township and are experiencing seismic monitorings prior to the selection of drill sites.


#3

Thanks. You have been waiting quite awhile for a 2nd person to join this Washington County group. Are you implying that drillling is iminent based on seismic moniterings? What are seismic moniterings? Chesapeake is doing it?


#4

Prior to selecting a drill site, all companies do seismic drillings. You will see teams of 2 men with orange vests walking your property and putting up orange tape where the geologist wants a seismic study. Then another group of people come around with an instrument that allows them to "take a reading" at that location of how much methane gas there is, what combination of wet and dry gas there is, and how deep it is. These seismic studies then determnine where best to place a drill site (that requires 3-5 acres). I just cam onto the Washington County group and was surprised that no one had yet activated the page given the large amount of activity going on in the Houston/Hickory area.


#5

Aguila is preparing to do seismic this fall in the northwest townships as well as the southern Beaver county townships.


#6

One of the difficulties that Range Resources is having in Cecil Township of Washington County is the determination of drill pad sites. Because of the hills in this area, it creates slope that the companies must monitor and approve before site preparation for a drill pad can be determined. It oftentimes results in up to 18 months being required for site selection and preparation.


#7

anything new in claysville area.


#8

Range spud the Claysville Sportsman wells not too long ago. They continue to convince landowners in the Donegal storage field to amend their leases.


Chesapeake permitted one group just north of W. Alexander and spud Robert Shorts. They have a bunch of fairly new permits up and down the state line.

Any idea what the pipeline is coming up from the south to I79? Between W. Alex and Claysville. Maybe a Chesapeake line.


#9

l have an offer from landman, have acreage in the Donegal Township , Dont know what to do. WHat is going rate on bonus and royalty rates. Would appreciate advise.


#10

My understanding is that Range Resources will offer a five year lease at 12 to 12 1/2% for $600 to $800 per acre.

Once they go to production, it would appear that lease holders are seeing payments at about $650 per acre per month .


#11

There was a large western Donegal group that signed with Chesapeake in the spring of 2011 for like $4k/ac and 19%, and I've heard of 2012 Range signings in other parts of the county for $3400 and 18%.

Much of the county is already leased, so there isn't much of a going rate. The western half is much more desirable. Get a map of the surrounding parcels (from specprint.com) and have the landman tell you which ones are leased to what company as well as marking any drilled or permitted wells. Actual layouts of the wellbores are available from the state. If they mention "planned" wells or units, give that less credence. Then check it against landex.com. If they're all with one company, there is no competition and you'll take what they offer.


I would be looking for more than $3k/ac and 18% -- Thomas P and I must have been in different situations.;)


#12

My quotation of $600 to $800 per acre is per year of the lease. Gerry, I believe that your quotaion of $3,400 to $4000 is based on $680 per acre per year times 5 years, the term of the lease (or $3,400) OR on $800 per acre per year times 5 years, or the term of the lease (or $4,000).

In the case of the 19%, this is extremely competitive and excellent. The highest percentage that I have heard of is 16%. Gerry is correct in that because much of the county is now leased there is littel competition and if Range Resources is the sole negotiator they are not going to negotiate against themselves. You pretty much accept what they offer.


#13

Quiet. I think I hear crickets chirping.

Any guesses as to the location of the leasehold Chesapeake is selling to EQT? It includes ten Washington county wells, so that's about all of them, I believe.


#14

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#15

I've heard Matt is a really nice guy who will fight his bosses to get you the very best deal. Only if you sell now, don't wait. These companies can only make offers for a limited time until the big boys shut them down.


#16

Matt also loves his mother and always sends her flowers on her birthday.


#17

Wait, where's the sarcasm button?