Chesapeake buying out Chief leases?

I had two different people tell me today that they heard Chesapeake was buying out all or most Chief leases in Sullivan County.  Has anyone else heard anything?

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Permalink Reply by Rebe Ken on October 8, 2010 at 2:52am
The little I know about Merritt, I found on my own. They are a retail distributor, which may explain why MS oil & gas (rsims@agb.state.ms.us) has not responded to my inquiry. Range Resources has responded that they know nothing of this company. It's been two years since our lease was signed, and I need to retrieve my paperwork to look at numbers, but I'm with Vicki from reply of 04Oct: We all should keep in mind that Marcellus shale expectations are getting higher!
Permalink Reply by Richard Newton Jr on October 13, 2010 at 11:38am
Hey all, I'm on the other end of this quandry. I've signed with CE(recently) at way below what my neighbors did and then a landman from Chief visits and says they would offer this and that to us, but sorry "you've already signed".
I know about "top lease" and "right of refusal" and it is very clear in my lease, I have the right to refuse an offer, at any time during the primary term or otherwise, and have the original lessee match offers or theirs is null.
Chief has not responded to 4 invitations to handle my lease even though a landman has been here and thus far, made no offers, in spite of my repeated urging... So I have no counter offer to go to CE with...So what good is that pc. in my original lease?
We are on the Bradford / Sullivan line. We are part of a unit that the genius' say is going to be "productive"... I would like a better royalty percentage when we move into the secondary leases far into the future for my kids and whatever beyond that.
I would really like to hear if anyone else hears similar news... Thanks!!!
CarolynPermalink Reply by Carolyn on October 13, 2010 at 6:55am
this is what gas companies do. They pay the landowner something for a lease. Then they turn around and sell the leases to another company at a much higher price. The gas companies are not on your side. They are on the side of the shareholders and the CEOs of the company. If you are going to lease your land, be very , very cautious and get a lawyer. Otherwise you can end up with ruined property and no royalties as often the gas runs out quickly in a given area. Although why anyone would trust any of these multinationals currently invading Pa is beyond me. The residents of Carter Rd. got $25 an acre two years ago. Now they are offering up to $6000. Personally, if I chose to participate in the destruction of my land and peace and quiet, I would not consider it for less than $50,000 an acre.
Permalink Reply by Richard Newton Jr on October 18, 2010 at 2:27pm
I think $50,000 is a very good number to lease my land per acre, but I'm not very interested in the bonus money. Pure and simple, we are not going to have any long term dividends unless the gas gets to market. Therefore we need pipelines to connect the wells that have been drilled, or should I say being drilled, and it all has to be tied together. I wouldn't know for certain, but would guess that the "players" want to produce rather than negotiate leases, in some places in Sullivan Co. Right of ways for the gaslines is the prime subject in some places Does anyone have any idea, or thoughts when all the gas pipes and well heads are going to be "virtually invisible"?, and tied together...and then metered so we all can "quietly collect", as I was supposed to believe... Sort of a nice thought...
Permalink Reply by KWG40 on October 17, 2010 at 2:48am
Chief and CHK are working together in Sullivan to develop the area, but Chief is not selling their leases to CHK.
Permalink Reply by Jeff on October 17, 2010 at 5:46am
Hi Kristi

I was just wondering where you got your information. Do you happen to work for Chief or Chesapeake?

Thanks
Permalink Reply by KWG40 on October 18, 2010 at 4:01am
Yes, I work for Chief
Permalink Reply by KWG40 on October 18, 2010 at 4:07am
I just changed my name to KWG40 which is what it is on other forums. We are only leasing right now to fill in areas around existing development areas. I don't think we have much in Tioga so answer is probably not. You would have to ask our land guys at Chief in Wexford. Patrick Sullivan or Pat Tyrone.
Permalink Reply by Jeff on October 18, 2010 at 5:44am
Hi Kristi

Could you tell me if Chief is for sale as I have seen on the net? If it is true maybe Chesapeake could get some Chief leases.

Thanks
Permalink Reply by KWG40 on October 19, 2010 at 3:14am
There are many companies that would sell if the price is right, thats just the business. You will also see a lot of leases trades, joint development areas, joint ventures etc, thats just the business too.
Permalink Reply by joe on December 22, 2010 at 8:19am
CHIEF IT APPEARS HAS SOLD ACREAGE IN SULLIVAN COUNTY TO EXCO. IT WILL BE HELPFUL IF ANYONE RECEIVES CORRESPONDENCE CONFIRMING THEIR LAND WAS INVOLVED IN THE DEAL TO LET THE GROUP KNOW. IT WILL BE INTERESTING IF CHIEF SOLD ALL THEIR ACREAGE IN SULLIVAN COUNTY OR JUST SELECTED PARCELS. EXCO IS A PUBLICLY TRADED COMPANY ON THE NYSE. PRESS RELEASE IS BELOW.
Chief Oil & Gas Announces Agreement to Sell a Portion of Its Marcellus Shale Assets
Tuesday 12/21/2010 5:39 PM ET - Pr Newswire

 

Related Companies



Symbol Last %Chg
XCO 19.45 0.70%
As of 1:37 PM ET 12/22/10

Chief Oil & Gas LLC ("Chief") and Radler 2000 Limited Partnership ("Radler") today announced they have entered into an asset purchase and sale agreement to sell certain
natural gas properties in the Marcellus Shale to EXCO Holding PA, a
subsidiary of EXCO Resources, Inc., for approximately $459 million. The
sale assets include 15 producing wells, 11 wells waiting on completion
and approximately 50,000 net acres located primarily in Lycoming,
Sullivan and Columbia counties in Pennsylvania.

(Logo: http://photos.prnewswire.com/prnh/20101108/DC97134LOGO)

"We are pleased to enter into this transaction with EXCO, which previously joined with BG Group, plc in a joint venture to develop its Marcellus holdings," said Chief's President and CEO, Trevor Rees-Jones.
"After the sale of these properties, Chief and Radler will continue to
own over 287,000 net acres of Marcellus leasehold in a gross position
covering approximately 500,000 acres, and we are enthusiastic about
continuing to drill and develop our acreage in this world-class shale
play. We believe this position holds substantial natural gas reserves,
which can only grow in desirability as our nation turns to
readily-accessible, abundant and clean-burning natural gas as the
primary fuel of the future to grow our economy and support our nation's
security, employment and standard of living," said Rees-Jones.

"Chief employees and Chief offices in Wexford and Williamsport, Pennsylvania will not be affected by the sale. Chief's midstream subsidiary, Chief Gathering, will also not be affected and will continue
to develop its planned pipeline infrastructure in Pennsylvania. The
proceeds from this sale will allow Chief to expand its development
efforts in northeast and southwest Pennsylvania, West Virginia and
Maryland," Rees-Jones continued.

Chief Oil & Gas has drilled 95 wells in the Marcellus Shale in Pennsylvania and West Virginia and will remain one of the largest leaseholders and most active operators in the Marcellus Shale. Chief
plans to exit 2010 as operator of 9 rigs drilling in the Marcellus, not
counting non-operated interests owned in leases and units being drilled
by multiple rigs operated by others.

Permalink Reply by joe on December 22, 2010 at 9:02am
VG WE TOO LEARNED OF THE CHIEF TRANSFER TO RADLER BACK IN 2009 ONLY BY DOING A TITLE SEARCH ON A PROPERTY WE WERE PURCHASING. SO MAYBE THE LEASEHOLDERS WILL NOT BE INFORMED OF THIS TRANSACTION ON AN INDIVIDUAL BASIS.

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