Understanding Chesapeakes latest remarks

One week they say they are absolutely thrilled with their results, now they're ready to pass on their oil prospects. Does this mean they are primarily focusing on the wet gas areas? There sure seems to be a lot of oil in the production numbers we've seen but maybe CHK is after the wet gas exclusively and is willing to let other companies focus on the oil. However, each well drilled in the utica, as we have seen, has produced oil, gas, & wet gas.

 

http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/chesap...

 

 

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Permalink Reply by bo boboski on November 14, 2012 at 12:13pm

Cheasapeake overextended itself buying up leases in a 2 county county area that holds mostly gas,not much oil. Other companies ,like Gulfport, leased in an area that holds lots more oil,than gas. Sure, they  now say they are satisfied with their core area. They gotta be!. No $$$ left to lease where the oil is. Harrison,Belmont, Guernsey. 2 years ago, when the big landgrab happened,it was a crapshoot as to where the best place would be to drill. Now we have a good Idea. The cheapest spots to grab leases was carrol/columbiana. Lot of HBP acres.Farmers who would sign for  a low $$, not knowing.  CHK will just have to make it work now,with the leases it has.  They just were'nt as lucky as Gulfport., who sets in the sweetest spot. thanks to Wishgard. who signed up alot of those  leases cheap,then flipped them to gulfport. 

Permalink Reply by JR on November 14, 2012 at 12:44pm
Do you think CHK walked away from much (if not all) of Tuscarawas Co for the same reason? Most of TUSC is HBP, making it hard to put units together. CONSOLs first well has oil and NGLs and they are moving forward with their plans...CHK poked some holes around then essentially walked away. Puzzling.
Permalink Reply by hopeforoil on November 14, 2012 at 1:43pm
Chk was first to the show and picked their spots based on information they had at the time. It wasn't because caroll and columbiana were cheapest they could've gone to any county and leased at the prices they paid. Keep in mind they have a position in east guernsey that they held onto when they sold western portion to Devon.
Permalink Reply by Bluflame on November 15, 2012 at 5:22am

Bo,

  Agree with all your comments except "thanks to Wishgard". I think Gulfport was just plain lucky!

They'd probably agree.

BluFlame

Permalink Reply by Happy for hardworking Farmers on November 16, 2012 at 11:55am

It looks like Chesapeake has confirmed what many suspected all along. They're mainly in it for the liquid gas and see that as their main line of business in the Utica. So they actually were "thrilled" with the results, just not as interested in the oil. Thats comforting for a lot of folks.

 

Chesapeake Energy CEO predicts 'decades' of drilling in Ohio's Utica shale

 

http://www.bizjournals.com/columbus/morning_call/2012/11/chesapeake...

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