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Anyone ever have a gas well drilled on their property?

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  • Anyone ever have a gas well drilled on their property?

    I own some land in PA where apparently happens to be a big gas field. I'm being approach to have a well possibly drilled. Yeah, I know check mineral rights, which I own, get a lawyer and so on. I'm just wondering about other details that could be over looked. The gas company has to be environmentaly friendly in drilling and shutting down the well when done. There seems to be a big frenzy going on by land service companies to sign up people. I've been googling the topic in the area and been reading up. Right now I have one offer that is $500 per acre (I've got 22 acres) and 12.5 cents per 1,000 CF. Some people are getting $1,500 an acre and I hear up to 15 cents! I know someone is going to tell me to ask for more but I'm afraid if I get that and they drill a dry well in my area, they'll avoid me like the plague.
    In reading up it seems that most leases are well under $100 per acre in general. My neighbor who I bought my property from got $100 from the same company that's talking to me last November. I guess things are heating up.

    If I make any money I realize that the total amount is going to be based on just how much gas the get. The payment from the lease will be negligable IMO, to the over all amount that I could possibly make. Anybody been there, done that?
    Tom
    Overdrive is overrated



  • #2
    Re: Anyone ever have a gas well drilled on their property?

    I have family and friends in western PA and I know one guy who had a gas well drilled and its been redrilled and re-drilled....they say there is gas there but for some reason there is no pressure building in the lines...thats one of the risks involved.

    I dont know much more than that tho...been gone 15 years and only go back every other year

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    • #3
      Re: Anyone ever have a gas well drilled on their property?

      Couldn't find your earlier topic anymore? ;)

      Here it is;

      www.BigBlockMopar.com

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      • #4
        Re: Anyone ever have a gas well drilled on their property?

        Uhhh, sorry I must of had a brain fart :-[ I posted on another forum as well, I guess I forgot...how embarassing :-X
        Tom
        Overdrive is overrated


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        • #5
          Re: Anyone ever have a gas well drilled on their property?

          I left Amarillo a year ago. I could have given you alot of info about that and who to talk to. But it could be very profitable if its done correctly. Just remember they are in it for the profit, and will find anyway to get it from you free. Hunt down a good laywer and do alot of research before you sign anything. Don't take upfront money until you see a continuing payment program.

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          • #6
            Re: Anyone ever have a gas well drilled on their property?

            how much you make will depend highly on where the "pool" is DRAWN, i know people who have wells on their property, and near their property, where the geologists DRAW the pool on the map determines how big your cut of the pie will be. dont just get an attorney, get an attorney who really knows MMS and the petroleum industry.

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            • #7
              Re: Anyone ever have a gas well drilled on their property?

              I owned property (5 acres) years ago in NE Ohio that had a NG well on it. The orginal agreement was written before I owned the land but when I bought it I got all the mineral rights including the gas rights. Twenty years ago I was receiving $500 month plus all the free gas I could us for my personal use. Today that would of been a small fortune. The only issue I ever had was the only way they could get to well was through my drive way past the house. Every two to three years they had to swab the well. What a mess for a few weeks, but they always put everything back. When I sold the property I ended up getting quite a bit more because of the rights.

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              • #8
                Re: Anyone ever have a gas well drilled on their property?

                Thanks for the info. I just got an offer for crazy money to lease. From what I'm finding is $50 per acre is the norm. The offer I got was $1500 per acre! I'm not so much looking for a lot of money to lease the property but I think it's in my best interest to get a well in the shortest amount of time because any delay installing a well is lost royalties which will out way any increase in lease is my reasoning. Heck, I'd lease the property for $1 if they installed the well tomorrow

                From what I've been reading is that the gas field I'm sitting on is 568 trillion cubic feet with a recoverable amount of 50-60 trillion cubic feet. The US uses about 19 trillion cubic feet per year. Yes, it's a significant find. The rep I spoke said it'll cost about 3 million bux to install a well! He said they're more then sure of the find. I'm trying to find out how to compete against other property owners, not gas companies. I have 22 acres.
                Tom
                Overdrive is overrated


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