For about the last week I have been hearing phrases like "all offers are off the table"," We are not signing anything right now."." They got an e-mail telling the to stop signing anything til further notice", "Cheaspeake is pulling there people out and concentrating on other area>" What actual real facts do we have? Anyone have any contact, calls, contract offers the last couple days? Any FACTS one way or the other?
You do not have to look far to see what is happening in my opinion. Natural gas is trading below $8.00/MCF and the Barnett Shale is shallower and less costly to drill and complete. Natural gas has dropped over 45% I think in a short period of time. The companies like Chesapeake and Petroquest and the rest had a brief shinning moment to cash out big time....Natural gas at almost and all time high, price of oil running through the roof with no end in sight; these companies ran the price of leases sky high on a few acres to try to flush a deal with a major oil company out....Now the majors if interested are sitting back licking their chops waiting for someone to cry uncle and the first one that does could possibly get really hurt. Only time will tell that is why everything is a risk....a risk to sign a lease.////a risk to not sign....Good luck to us all...
I do not believe that the o/g companies only have 6 month windows. They have enough property to now trade among each other and start their drilling. They will need more property at a later time. You just have to wait for them to start their leasing again.
Someone called me about land in Harrison County, TX last Friday. My land in TX is already leased (3 years ago + 2 more). He called back a couple minutes later and ask if I knew of any unleased land in Harrison County.
He was looking for CHK (and mentioned $8-10K).
Thought we had a deal with CHK, but when agent came out, found out we only had half a deal. They wanted to wait on the rest, Very disappointed in company. Agent said everyone wants to lease with CHK. Feel like CHK is feeling a little too big headed, and they lost a lot of their credibility with me.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More