BP Offers Trumbull County Landowners $3,900 an Acre
YOUNGSTOWN, Ohio – BP, the London-based energy giant, is expected to soon announce the execution of an oil-and-gas drilling lease for 85,000 acres in Trumbull County. The lease was negotiated by the Associated Landowners of the Ohio Valley, and could net landowners $3,900 per acre, according to The Vindicator.
If accurate, that would put the total value of the leases at $331.5 million. Landowners would also receive royalties of 17.5 based on the value of the oil and gas extracted from their land.
The Associated Land Owners describes itself as “a nonprofit organization of local landowners who have joined together to educate and protect your land owner oil and gas rights.”
Trumbull landowners met last night at the Covelli Center to hear the terms of BP’s offer. Nearly all voted in favor of the agreement, the newspaper reported; landowners were asked to maintain confidentiality until BP announces the agreement.
BP announced in February that it was selling its Kansas gas production and processing assets to an affiliate of LINN Energy LLC for $1.2 billion in cash. The sale is expected to close March 30.
In announcing the Kansas deal, BP’s group chief executive, Bob Dudley, said the company is “reshaping BP’s business around the world, focusing on our strengths and future growth opportunities. The sale o these mature assets will allow us to concentrate our efforts on our strong core positions in the U.S. and globally.
In 2011, BP produced over 1,800 million standard cubic feet per day of natural gas in the United States, the company reported.
Copyright 2012 The Business Journal, Youngstown, Ohio.