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Wednesday, August 28, 2013

Carrollton Council Considering Sale of Oil & Gas Royalties

From the Canton Repository:
Village Council plans to sell one-fourth of the village’s 20 percent gross profits from its oil and gas leases with Rex Energy to Gateway Royalty for a one-time payment of $555,000. 
Gateway asked council to consider the offer several weeks ago. On Monday, council discussed the offer, which would allow the village to purchase a new firetruck. 
The estimated cost for a new truck is about $370,000, according to Fire Chief Tom Mesler. That amount does not include the cost of additional equipment and upgrades. 
Gateway would receive the royalties from 110 of the 443.05 acres leased to Rex Energy by the village. Gateway has leased about 8,500 acres in Carroll County at either one-quarter or one-half share. The company has estimated the lifetime value of its royalties from the village is about $2.2 million.  

Read more: http://www.timesreporter.com/newsnow/x511617905/Carrollton-could-sell-oil-gas-royalties-for-0-5-million#ixzz2dIPaUEUq

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2 comments :

  1. I think there is nothing wrong with the move. It is even a better idea because there are other more pressing financial needs. The royalties will take years anyway so the council will still be able to gather enough revenues.
    - LegacyRoyalties.com

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