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Permalink Reply by 0i7okn54zwbdo on June 20, 2012 at 3:24pm

Sinopec would have a tough time buying Chesapeake in its entirety so I suppose the next best thing is to buy some of their assets.  Most of the stuff they're selling is not terribly attractive.  It's in unproven areas and, more importantly, it isn't blocked up like their best positions (which are in the Total JV).  Buying their assets outside of the JV lines would be a good foot in the door for any company but it isn't on its own a great package.  Whomever ends up owning it will have to do some major work to get it ready for a big drilling commitment.  

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Permalink Reply by melissa humphrey on June 20, 2012 at 9:56pm

CHK has been lucky over the last 5 yrs selling %s and gas assets. Unfortunately they plowed it all back in, question now is that game up for now? Abrey is a great salesman, they need it now more than ever.

If I were an acquirer, I would go for their PA Marcellus or nothing at all.

Economics are tremendous, doubt they would sell that except in Chap 11.

 

And of the total , even in PA, only a % is truly prospective, maybe 30-40% max.

melissa

Melissa.

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Permalink Reply by 0i7okn54zwbdo on June 21, 2012 at 2:47am

PA Marcellus economics are a disaster at these gas prices.  At $7MCF they're good, but not today and not anytime soon.  If they can survive these next few tough years they'll have a shot at making enough money to cover their debts.

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