Story is in Salem News today.   Sorry I'm unable to post the article due to lack of experience.  Looks like chk maybe staying.


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Thanks Don!
Here's the link:
http://www.salemnews.net/page/content.detail/id/583126/Chesapeake-r...
Is it me or do the Numbers not add up?

Thanks for the help Todd.   Why would CHK have to pay a bonus again if its HBP?

Which numbers do you mean?

The city probably has a Pugh clause in their lease so any property not pooled in a production unit is open for a new lease after the original expiration (primary term).
$1,252,903 bonus payment for 211 acres equates to $5938/acre not $3500/acre.
Can anyone clear this up?

I read it as a small amount of the 211 is unitized and producing (recall 28 acres mentioned). The remaining acreage was not HBP and will be in another unit.

Does it sound like CHK setting Salem up for an offer they cant refuse?  Free water? I don't know....Im confused.

yeah, now I get it. That payment would be for over 300 acres. The reporter has something mis-reported.

The city sold water to CHK to frac the Huffman well a few months ago.  Not sure how it was measured or if they ever got paid for it.  It was never reported in the news.  They set up a pump at Spring Valley lake and ran a line on top of the ground to the Huffman well.  It would be interesting to see how much they made.  I think they were contracted to sell at $5 per thousand gallon (or was it $7.50?).  I think a well usually takes about 4 million gallon to frac a Utica well, but this one was about twice as long as most.  So they should have made $20,000 to $40,000 for the water....

Seeing this is going to make the 1st ALOV group very happy, right or wrongly. They're up April 2016

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