If they don't renew those leases then said leases will no longer be collateral for the mortgage.
I think CHK will be selling a lot of Utica leases in the near future .......they are about broke and are not renewing any leases at this time from everything I read .... they are in talks with some Asian companies looking to buy up leased acres .....most companies are not renewing leases
What likelihood do you think Chessie has selling those leases in Mahoning and Columbiana? BP can't sell Trumbull.
So that'll leave Total E&P out in the dark too, right?
Northern Columbiana, Trumbull, Mahoning and Ashtabula are not economical to
drill so don't figure the leases up there will be renewed or sold ...no wells drilled in Ashtabula and a handful of duds in Mahoning and Trumbull ....those leases are not very marketable and investors in this market are only interested in good acreage.....If that acreage was any good Aubrey Mc Clendon would have been there scooping up every acre he could and BP would have never closed up shop and wrote off the acres they have.... your out of the pickle up there Halcon the only idiots up there and their about to go belly up there is no new well development happening up there,,,,,go to ...uticashalemaps.com and u can see what I mean look at production reports for the producing wells in Trumbull and Mahoning counties all duds
JOEY better look around there are no rigs drilling in any of those three counties there is no big infrastructure projects up there either
and there wasn't any when prices was up a year ago maybe Halcon who is on the verge of bellying up your living on a hope and a dream like I told u before ....not economical then and not economical now or in the future everyone of the wells Halcon drilled are duds and BP left town one permit in Ashtabula that has never been developed not been a new permit issued up there in over a year in all three counties
what have u been smoking like to get me some of that
don't know the terms of the loan but people default on loans every day then the lender takes the collateral and salvage what they can to recover the lose the banks were snowballed in to thinking it was a good investment when prices were up now they have to live with the bad investment since the bottom fell out ..........CHK has money borrowed against all their acreage in Ohio that's why they are trying to sell it off right now ......but acreage with little to no potential will probably not be renewed or sold off and life will go on the first 5 years was a learning time now they know what is good and what is junk and will be weeding out the junk acres and cutting the fat the companies that did lease in those northern counties mostly jumped on the wagon late in the game and leased up there with hopes it would play out to be good but found out with a little exploratory drilling it is not worth the risk up there
Buying leases up there would be like buying a car with 2 flat tires and no muffler
currently there are 19 rigs running in Ohio not one rig running in the three counties up north .....wonder why.........maybe they are waiting on 200 dollar oil and 10 dollar natural gas