I happened to be in the Mahoning co recorders office today on another matter. We got to discussing Chesapeake and I was told that they assigned a bunch of leases to Total E&P USA and a Michael Kohut. This included my own lease that had a clause that it couldn't be sold, I guess assigning is different then selling.

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Did your lease say that it couldn't sold or assigned?  There's a difference.  The JV with Total is one whereby CHK operates the wells but TOT gets a cut.  It's very different than if I took your lease then sold the whole thing to Operator X.

I'd half to dig it out, I know it says it can't be sold but not sure about assigned. To be honest with the problems Chesapeake has had I'm not sure I care. That is depending on what kind of company Total is to work with.

Total isn't going to be working with you.  It's a Chesapeake lease and Chesapeake will be operating it.  It's the exact same situation as you were in before except Total is paying most of Chesapeake's bills.

Thanks, that clears it up. Chesapeake was so gung ho in my neighborhood last spring. They even pulled a permit that cover part of my acreage then when their financial troubles surfaced they got real quiet. Hopefully this will get the ball rolling again.

Ohiosam,

 In one area CHPK is doing nothing.

 Then in the neighboring county they are building pads as fast they can.

 They are putting rigs on the pads, drilling, fracking and flaring the laterals

 Gathering Pipes are being buried at a frantic pace.

 They were working round-the-clock on the Cryogenic factory.

 

 Your opinion is based on a very small view of a much larger picture ...

 99% of the action is SOUTH of Mahoning county.

 Landowners in Carroll & Columbiana counties are already receiving royalty checks.

I know exactly where the drilling is happening. I could see one of the Columbiana county wells being drilled from my place. They are systematically drilling down one side of the county line and not the other. I personally know many of the landowners where drilling has/is happening.

However a year ago CHPk was expressing more interest in drilling in southern Mahoning co then in some of the places they have since drilled south of the county line. They since have changed focus. If the change in focus was the financial problem CHPK was having I see the Total deal as a positive in moving forward in Mahoning co.

January 3, 2012: Total announces that its subsidiary, Total E&P USA, Inc.(“Total”), has signed and completed on December 30, 2011 an agreement to enter into a Joint Venture with Chesapeake Exploration, L.L.C.,a subsidiary of Chesapeake Energy Corporation (NYSE:CHK), (“Chesapeake”) and affiliates of its partner EnerVest Ltd. In the agreement, Total acquires a 25% share in Chesapeake’s and EnerVest’s liquids-rich area of the Utica shale play located across 10 counties on the eastern side of the state of Ohio, USA.
Yves-Louis Darricarrère, President, Total Exploration & Production, stated “Total is delighted to be building on our technical successes with Chesapeake in the Barnett Shale Joint Venture and to expand into the liquids-rich Utica Shale play in Ohio. This is consistent with our strategy to develop positions in unconventional plays with large potential and, in this case, with value predominantly linked to oil price. This joint venture will provide us with a material position in a valuable long-term resource base under attractive terms and with a top-class operator. Total is conscious of the environmental aspects linked to developing shale acreage and is confident in Chesapeake’s capacity to manage the Utica shale operations in a responsible manner, respecting the highest industry standards. ”
The transaction is effective as of November 1, 2011. Total has paid Chesapeake and EnerVest about USD 700 million in cash for acquiring these assets. Total will also be committed to pay additional amounts up to USD 1.63 billion over a maximum period of 7 years in the form of a 60% carry of Chesapeake and EnerVest’s future capital expenditures on drilling and completion of wells within the Joint Venture.
The Joint Venture covers approximately 619,000 net acres, of which 542,000 net acres are brought by Chesapeake and 77,000 net acres are brought by EnerVest. Total will acquire its 25% share from each of Chesapeake and EnerVest on identical terms, giving a total of 155,000 net acres. Chesapeake will operate the Joint Venture acreage.
As a result of the transaction, Total will also acquire a 25% share in any new acreage which will be acquired by Chesapeake in the liquids-rich area of the Utica shale play.
To date 13 wells have been drilled across the acreage with very promising results seen from each well in terms of productivity and liquid content. The Joint Venture plans to ramp up the drilling activities in the coming 3 years with 25 rigs planned to be mobilized by 2014 to fully appraise and develop the acreage. SEC production in Total’s share is expected to reach 100,000 barrels of oil equivalent per day by the end of the decade.
Additionally, Total, Chesapeake and EnerVest have agreed to jointly develop the construction of the necessary midstream facilities to export the production from this acreage.

http://www.total.com/en/about-total/news/news-940500.html&idAct...

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