Some of the biggest producers and most active leasing companies in the Barnett Shale brought their leasing activities to a screeching halt this week, disappointing unsigned property owners and perhaps changing the market price of signing bonuses in the play for good. Among the disappointed landowners is Rorie Cowden, whose Hidden Valley miniature golf course on 5.5 acres bordering Jacksboro Highway is part of a Lake Worth negotiating group that signed the richest reported lease in the county: a $30,000-an-acre offer from Chesapeake.
"I was waiting for them to send me my lease packet," Cowden said Thursday, but he got nervous when he heard producers were cutting back. When he walked into the Vance Godbey’s restaurant, where signings were under way, he was told that the new bonus figure was $5,000. The difference: $137,500. "I did not sign," he said. "I never thought it would hit like this. The bubble has burst."
See the Star-Telegram's full report here.
-- Jim Fuquay
Hey Meredith and Drill Bit,
Do you have any properties that are involved in dealings with XTO or Permian? If not then you should just close your mouth and let those who are directly negotiating with them have their say. I can reasonably assume that if you had a deal with one of them and they suddenly reneged that you would be slightly upset. If this company backed out of their deal and left the land in the area destroyed from their oil rigs I would definitely persue legal action for the costs of fixing the damaged areas. Shame on you for being so insensitive, and I only hope that you are treated as you have treated others.
Posted by: Jeff | February 05, 2009 at 07:11 PM
What is the difference in homeowners banding together to get a better price & gas companies banding together to pay sensible lease prices. Not saying either is, but if one is collusion then so is the other!
Posted by: BC | October 23, 2008 at 01:37 PM
The funny thing is, Vantage pulled out of our deal and i get a call today from Chesapeake saying they are will to keep leasing in my neighborhood, but at significantly reduced prices. This thing was just a ploy to collude and get the prices down by supposedly reducing the competition. The price of gas has nothing to do with the slowdown. It is at just about the same level it was one year ago when you look at the NYMEX prices. I think the companies just got together and banded together to drop the prices that they are having to pay for leases. They better not walk into my house and offer that 5k that they are talking about or they will be shown the door very quickly.
Posted by: Jeff B. | October 22, 2008 at 06:38 PM
can we hear from any more cry babies, yall need to get a life KIM
Posted by: meredith | October 21, 2008 at 09:26 AM
Hey, Kim CRY Me a River
Posted by: DRILL BIT | October 20, 2008 at 04:19 PM
Chesapeake reneged on their agreement to over 400 homeowners in our Crowley neighborhood on Friday...one business day before we were due to sign our leases (Monday, October 20). To say we are bitterly disappointed is an understatement. We were reassured all week that Chesapeake would follow through with the agreement they made with us, explicitly, in fact. And then, they yanked the rug out from under us.
Hopefully the article in today's S-T is true and others will be along behind them. No, the deal will not be as lucrative for the land/homeowners here, which is a shame for us, but it is too bad that at least one energy company came in, made the deals with us, and then backed out, but have gouged up the land with their rigs everywhere anyway.
Posted by: Kim | October 19, 2008 at 03:23 PM
Wow! The miniature golf business must be really good if someone can turn down $25,000 & the potential for 100k in royalties. I wonder how much Mr. Cowden reported he made last year?
Posted by: BC | October 18, 2008 at 03:16 PM