Expert: Alan H. Coogan Date: 4/13/2008 Subject: gas lease
Question first of all thankyou for being available. What is the financial risk if any of waiting a year or so for considering signing a gas lease (53 Acres) 5 miles to pipe line 21 wells drilled in shut positon 5 miles in front of us near pipeline. some neighbors have signed around us 200acre/100 acre parcels. present signing bonus $2000 an acre 15-18% royalty. we may have between 400 and 500 acres of of neighbors land plus our 53acres. Cabot says this is their core area in susquehanna county pa marcellus shale. at the very least we could wait ourselves (53 acres.) we are surrounded by cabot leases would they still be interested in us if they continue to find gas in the area?would they want or need us?
Answer Dear Harvey: The basic risk is being left out, tho you have no assurance the company will actually drill. Your question can only be answered by Cabot and time. If I were in your position, with only 53 acres, I would lease for the best offer now.
good luck,
AHC
