Replies to This Discussion

Permalink Reply by intrepid on August 21, 2008 at 15:26

Did you hire Fortress to represent you? How much is Fortress charging to get you that deal?

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Permalink Reply by Angelonmyshoulder on August 22, 2008 at 8:05

Fortress gets 4% of the sign on bonus. They have nothing to do with the royalities. haven't signed the lease yet with Petrohawk. I'm not obligated to take this amount..
I get the full 25%.. Fortress just neg. the deal with petohawk.There are around 1000 acres in my group. The leases just began comming in this wk.

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Permalink Reply by nisie, not a happy camper landowner on August 22, 2008 at 8:26

I would advise doing more research before making any decisions.

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Permalink Reply by kenziesmom315 b2 & cb4 on August 22, 2008 at 8:51

Yes - that is how the agreement is worded if you sign with them to bid your land out. You are obligated to them for SIX months after the lease is signed. If you refuse the offer they come to you with and you sign with ANY other O&G company before the 180 days is up, you owe Fortress 4% of the bonus money. I was at the meeting in Claiborne parish and specifically asked that question. There representative said they felt like the had created the market for your land and that is why they were entitled to the 4% if you chose another company. I felt the Haynesville Shale created the market for my land. Needless to say, I didn't sign with them.

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Permalink Reply by Pat on August 22, 2008 at 10:06

That is too bad to hear that you have to pay them 4% since there are so many organizations that you could have joined to do it for free.

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Permalink Reply by J W on August 22, 2008 at 10:38

I PAID 500.00 A ACRE SO THAT NOT BAD. PEOPLE DONT WORK FREE. I LIVE BY CROOS LAKE.

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Permalink Reply by ez on August 22, 2008 at 11:50

hmm not good either my sister signed for 22500 an ac. and she paid 15 bucks. she was a part of a coialition.

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Permalink Reply by Snake Stewart on August 23, 2008 at 1:37

Hey Mr. Watkins , at 4% of $19,000 thats $760 per acre . What if you had 10 acres ( $7,600 ) or 100 acres ( $76,000 ). For every 500 acres Fortress made a whopping $380,000 and that doesn't even take into consideration an overriding royalty or if they flipped for a % or 2.Not saying they did but there are groups that are doing just that. In our group that would be roughly $3,800,000 for their fee's , if we didn't get any bigger.
That comes up to a difference of $4,260 per acre that the Fortress group lost to the coalition group totals.
Paying someone to take less money doesn't sound like the extra paid representation paid off for those guy's.

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Permalink Reply by Pat on August 23, 2008 at 19:16

Many people/organizations are working for free.

If you are happy paying $500 acre then I am truly happy for you. Honestly, I am. However, it is not necessary to pay $500/acre, a percentage of your royalty or a percentage of your bonus. More and more people are discovering that.

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Permalink Reply by TRUCKER on August 22, 2008 at 11:51

HELL YES I GOT ONE FOR $5.000 AN ACRE

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Permalink Reply by Barney A1 on August 22, 2008 at 15:33

Another group in your area that only charged each landowner $15 for the legal fees, negotiated a lease of 22,500 for 3 years and a 2 year option for another 22,500.

The difference in your group and this other group is your lease is only for 3 years, no option (some view this as a better option). Also, you are having to give 4% of your bonus and the other group isn't having to give anything but $15.

Also, I think your group is with Petrohawk and the other group is signing with Chesapeake.

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Permalink Reply by Greenwood Gas on August 23, 2008 at 0:25

Yes we signed with JPD Energy working for CHK and got 3 yr @$22,500 acre with 2 yr ext @ $22,500 with 25% Royalty and paid $15 for Attorney. We got our leases to review yesterday and will be signing within a week or 2.

As far as who is working this area now
This is from an email I received from our group leader 2 weeks ago
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JPD informed me that Chesapeake was shifting their focus in their leasing process.
"As you may have heard, Chesapeake is shifting their focus to areas where they either own a majority of the leasehold or can obtain the majority with drill sites. Since they have reached their overall goal in terms of acreage leased, they will no longer accept any lease form that does not meet their standards, even if it’s been accepted in the past.
We will contact the landowners with title issues before the closing. I do not have a clearer timeline as of now, but will know with more certainty once the lease form is worked out."

I also inquired about starting a second group to pick up some stragglers. Their response was:
"As far as forming a second group, unfortunately they may be out of luck. As I mentioned earlier, Chesapeake has shifted their focus and they have pulled us out of Township 17 North, Range 15 West altogether. We are following through with our deal because we were told to close deals in 17-15 where we either had letters of intent, as in your group’s case, or where the lease is in the mail. Also, we haven’t been told if we will be moving back into the area or not, nor whether another Chesapeake broker will move in. "
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So maybe Petrohawk is the only player left in this section?
We had another group in Greenwood that went with Fortress and they got $19,000 with 25% but had to pay 4% of $19,000
A week later we got our 22,500 and the Fortress Group was highly PO'd but they were informed that they could go with our group and get $22,500 but would still have to pay 4% of $22,500 as it is stated in the agreement they signed with Fortress

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