Is This The Same Company We Signed With?

http://www.reuters.com/article/2011/12/28/us-energy-giant-newspro-i...

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Permalink Reply by Mike Zimmerman on December 29, 2011 at 1:04am

Another reminder that you need a good oil & gas attorney working for you or be part of a good group lease. I'm just glad we have the 'goods' under us.

Permalink Reply by Schnoozie on December 29, 2011 at 4:48am

Use your head people.

I knew Chess was behing all this crap, They created a Co. called Ohio Utica then sold the whole thing to someone????

Good luck with your "18% lease with NO Deductions" you were promised.

Permalink Reply by dr j on December 29, 2011 at 7:39am

http://www.bloomberg.com/news/2011-12-05/chesapeake-sells-750-milli...

Since the name of the subsidiary is Chesapeake Utica LLC - I would say that particular deal does not fall into a "shell" category.   CHK Utica LLC is also an entity created to sell shares/raise capital specifically for development of the Utica - on land CHK has already leased.  A completely different phase of the process than the Reuters article highlights. 

Permalink Reply by Schnoozie on December 29, 2011 at 8:10am

I saw that, the thing that concerns me most is who owns it now, and will, in the future.

It seems like they promised a pile of money to the landowners, got the leases signed, then paid them for the lease, then put the whole thing up for sale, and got someone else to pay for it.

That's their right, I am not saying thats a bad thing. Just long term who owns it!!

WHO??

Permalink Reply by Jack Straw on December 29, 2011 at 8:34am

RE: " who owns it now, and will, in the future"

Whoever owns the lease (now or in the future) will be bound by the terms of the lease.

Leases and producing properties can be (and often are) traded like baseball cards.  

Just as you can sell what you own to whom-so-ever you wish; the leaseholder can do likewise.

I try not to worry about things that are outside my control.

If my lease ends up in the hands of a bunch of little green men from the planet Zeldog, all I can say is that I hope they drill a well on me.

 

JS

Permalink Reply by Schnoozie on December 29, 2011 at 10:24am

I just want to be able to bang on someones door and get an answer if something goes wrong. or frankly, if I feel the terms of the lease are not being met.

More confusion.

Permalink Reply by Jack Straw on December 29, 2011 at 2:56pm

This is 2011, not 1951.

If you call Exxon, you will likely talk to Abraham Lincoln (aka Gupta Singh) at Exxon's help desk in Mumbai, India.

If you call Chevron, you will likely talk to Michelle Obama (aka Rusani Soetoro) at Chevron's help desk in Jakarta Idonesia.

If you call Shell, you will likely talk to Martin Luther (aka M'Bola Virus) at Shell's help desk in Lagos, Nigeria.

Banging on someone's door and getting an answer died years ago.

If you would like to speak in Spanish, press 1.

If you would like to speak in Mandarin, press 2.

If you would like to speak in Cantonese, press 3.

If you would like to speak in Hindi, press 4.

If you would like to speak in Ebonics, press 5.

If you would like to speak in Hmong, press 6.

..........................................b

 

JS

 

Permalink Reply by Mud on December 29, 2011 at 2:38pm

Most everything I have heard about Chesapeake has been pretty positive (but then again the locals here have Cabot to hate on) so all the threads relating horror stories were a little surprising. This one takes the cake, though. Regardless of the legality it's a pretty rotten way they are conducting business. I'm glad we're dealing with Southwestern. They seem like an overall decent company.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on December 29, 2011 at 5:31pm

Oh 'mud' ...you haven't read this one yet evidentally.   They didn't just take the cake they made a profit without paying the cake material owner the full royalty value.

http://gomarcellusshale.com/forum/topics/should-we-need-to-purchase...

I would say that Chesapeake could really do with hiring some trustworthy individuals to help him make his deals work for the long term value of good customer relationships...this kind of business dealings can really make some weary of doing business with them.   Of course there are success stories as well...but stepping on the little guy to make your way up the financial ladder does have its bad times for the future of such a company.

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