Bailing out of everything outside the JV, likely because they don't have anyone lined up to help them pay for operations.
Make it a triple! CHK is a criminal enterprise masquerading as an O&G company. When they come knockin' at your door or fool you into attending one of their "meetings", be prepared to be fleeced big time! But they're smooth as silk so you'll not even know early on that you're being raped.
Actually, it was announced as the best shale well ever, which must now make the Buell well in Harrison County second best. Even if true, CHK should have anticipated skepticism on the part of anyone even vaguely familiar with their recent history. The announcement timing smacked of desperation.
In my opinion, all of the leased property they've maintained is not part of the Total JV. I take them at their word (reluctantly) that they retained the prospects in the "sweet spot" where they have the most contiguous acreage. Probably will still be wheeling and dealing with other O&G companies involving acreage within the retained portion.
What does this mean for those that have been holding out to sign leases for more money?
I find it very interesting that are not selling the rights to the Trenton Black River or the Rose Run. Does this mean they are holding those until they can be proven productive? And do they believe there is value there?
Maybe because they don't own those rights...
Most leases, especially older ones, don't have any depth restrictions and are considered "to the center of the earth." And a large percentage of their holdings are from older HBP wells they got from Enervest. Also, most landowners didn't get any depth severance in their leases. Therefore, they own to these strata in a very large percentage of their lease holdings.
Some of those leases that they bought were for the Utica/PP only. The HBP operators that sold them could have reserved all other strata for themselves.
Good point that I hadn't though of...thanks
from what I heard CHK is overleveraged right now so they need to sell off some things to raise some cash,
they are a little short on cash right now
there will be some restructuring with the company but next year at this time watch their stock take a huge jump
from near $17 now to way over $28 maybe $30 or even $50
Just curious, but is anyone registered on the MEAGHER site and have you ordered the data package? And is there a fee associated with ordering the data package?
You need to pay for the service to see the whole package. They assume that if you have hundreds of millions to buy these deals you can afford the fees, I suppose.