On Saturday 12Sep09 the Friendsville Group announced a Gas Lease agreement with Fortuna Energy for $5500/acre @ 20% no deductions royalty for 5+3 year term with a Landowner Friendly Lease. Besides this being a very attractive financial offer, one of the best features of the agreement is the strength of the Landowner Lease. Oil & Gas Attorneys and Gas Companies have said that the Friendsville Group Lease is more Land Protecting and Landowner Favorable than most if not all Gas Leases that they have ever seen.
Hopefully, the majority of the Group Members were able to attend Saturday's Group meeting. If you were not there, please review the information posted in the left hand column of this website to see the important information. If you know Group Members who do not have computer access and who were not able to attend yesterday's meeting, please print them out an LOI and pass along as much information as possible.
MOST IMPORTANT POINTS:
If you are a member of the Group and want to sign the Group's Gas Lease you have to complete a Letter of Intent (LOI) and send it to Fortuna by 5pm on Wednesday 16Sep. See the blank LOI form, instructions, and Fortuna Mailing/Contact information in the left column of this website.
If you are from Bradford or Susquehanna County and are not a member of the Friendsville Group, you can send in an Add-On Form to Fortuna to request to be be considered if they want to obtain more acreage as part of this deal. Get the blank Add-On Form, instructions, and mailing/fax/email information from the left column of this website.
After Members send in their LOI to Fortuna, they need to call Fortuna at 866-566-4747 to make an appointment for Lease Signing on 26 or 27 Sep09 at the Neumann Hall in Choconut, PA.
See information in the left column of this website on the Lease Signing Process.
The main mission of the Core Team now is to make sure no Members get left behind. So, this week the Group will mail out hardcopy information, blank LOI's, and return envelops to any Members who have not yet returned LOI's. The main purpose in doing this is to catch those Members who do not have computer access. If you get one of these letters from the Group and you have already sent in your LOI, then you can disregard the letter and give it to one of your neighbor Members who do not have a computer.
Other Landman Offers:
You may have noticed that other Company Landmen are still competing for your Land. Make sure you read the "fine print" in any of their offers to understand what deductions come out of the royalty and what Lease goes with the offer. Some other Gas Companies are claiming that they will offer the Friendsville Group Lease. If you decide to take an offer from another Gas Company besides Fortuna, make sure you compare their lease to the Friendsville Group Lease posted on this website. Changing as few as two or three words or numbers in a complex Lease like this can completely change the entire concept and intent of the Lease. BE VERY CAREFUL with the Companies besides Fortuna that are offering the Group Lease. They ALL were competing for this Deal and they ALL had problems agreeing to the Group Lease. The non-Fortuna versions of the Friendsville Group Lease WILL NOT be the same as the Group Lease. To prevent confusion, Fortuna will not contact you at your house unless you request it. If someone besides the Core Team (see list on this website) comes to your door or calls you offering the Friendsville Group Lease or Deal, it IS NOT the same as the Group Lease.
General Group and Deal Information:
The Friendsville Group is comprised of over 35,000 acres in Bradford, Susquehanna, and Broome (NY) Counties. There are over 900 members in the Group with over 1400 total parcels. This is a $192.5 Million endeavor if there are no primary term extensions beyond 5 years. In the future, should Fortuna decide to extend some parcels for the additional 3 year option, the Landowner would receive another $5500/acre and the total value of the deal would go over $192.5M.
Thanks,
The Core Team