Replies to This Discussion

Permalink Reply by 1s7k1qp9wk1t7 on January 18, 2011 at 6:07am

i read that chevron bought out atlas energy for just under 4 billion and now control about 1,000,000 acres in pa and oh that atlas had under contract.....i was told they will be taking over the offices in pa that atlas occupied.....i was told they will be in harrison county around march/april

Permalink Reply by Josh on January 18, 2011 at 6:14am

that is excting to hear, as far as everything else not sure what happened to all the chatter. I was down at my place over the weekend and could see they were still working at the buell site.  I think they really like what they found, but we can speculate about everything that is going on.

Permalink Reply by John L Pace on January 18, 2011 at 10:48am

Has anyone contacted Kenyen Energy...or have you seen the articles about Chesapeake discontinuing their leasing efforts to concentrate on the leases they have acquired???? You may be surprised. The articles about Chesapeake are from the Wall Street Journal and the New York Times.

Permalink Reply by 1s7k1qp9wk1t7 on January 18, 2011 at 6:57pm

i'll make a call sometime today....i have a contact

Permalink Reply by John L Pace on January 19, 2011 at 2:37am

Chesapeake to Cut Long-Term Debt, Reduce Output GrowthBy Jim Polson - Jan 6, 2011 9:06 AM CT Thu Jan 06 15:06:30 GMT 2011Chesapeake Energy Corp., the most active U.S. natural-gas driller, plans to cut long-term debt 25 percent in two years by selling assets and throttling back acquisition of new drilling leases. The strategy shift will reduce production growth to 25 percent through the end of 2012 from a previous target of as much as 40 percent, Aubrey McClendon, Chief Executive Officer of Oklahoma City-based Chesapeake, said in a statement today. No stock will be sold to buy debt, the company said. “This plan represents a fundamental shift from our aggressive asset accumulation of the past few years to a multiyear period of asset harvest, characterized by a clear focus on capital discipline and maximizing returns,” McClendon said in the statement. The company spent about $5 billion to add leases in 2010, according to an investor presentation posted on its website. Chesapeake reported $11.4 billion of long-term debt as of Sept. 30, according to its latest quarterly filing with the U.S. Securities and Exchange Commission. That was 7 percent less than a year earlier. “This is exactly what investors need to see,” Scott Hanold, an Austin, Texas-based analyst for RBC Capital Markets who rates the shares “sector perform” and owns none, wrote in a note to clients today. “We need to see evidence it will happen.” Increasing Oil Output Proved reserves rose 18 percent last year to 16.9 trillion cubic feet as of Dec. 31, the company said. Chesapeake locked in an average price of $5.84 a thousand cubic feet for 96 percent of its expected 2011 gas output. Average daily output rose to the equivalent of 2.9 billion cubic feet in the fourth quarter, an 11 percent increase from a year earlier. Output of oil and related petroleum liquids doubled to 59,500 barrels a day on average. The 2011 target is about 90,000 barrels a day, John Kilgallon, a Chesapeake spokesman, told investors yesterday at a conference in San Francisco. Chesapeake is seeking to increase the amount of oil it produces because crude prices are higher than gas. Year-end production and reserves reflected asset sales including a $1.08 billion joint-venture stake to Cnooc Ltd. completed in November and the $1.25 billion sale of future output, known as a volumetric production payment, to Barclays Plc that was effective Sept. 30. Chesapeake rose 74 cents, or 2.8 percent, to $27.24 at 9:50 a.m. in New York Stock Exchange composite trading. Chesapeake was the most active U.S. driller in 2010, averaging 124 rigs in weekly reports, double that of second- place Exxon Mobil Corp., according to Baker Hughes Inc. To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net. To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net.

Permalink Reply by James Harber on January 23, 2011 at 5:45pm

Don't count CHK out just yet, they may be tightening their belt, but they are far from out of the picture in Harrison County and multiple other counties that they are leasing in now. I leased with them as a in-house Landman and the Buell well just South of Jewett was some of my leasing efforts. I hear alot of speculation concerning CHK, and for the most part that is all it it, alot of talk. But, within the next 18-36 months you will then begin to put it all together as operations are starting to move forward. I remember back in December when I told several Landowners that they needed to lease or not, because CHK had the $$ and that they wouldn't be leasing in Harrison County more than about 12-18 months, Jan 2011 was 12 months, so my prediction was right on target. you will see all the other companies come in the area now that CHK has pulled back in Harrison County as far as leasing goes. But, we are now int the exploration stage when activity will really begin to move over the next 18-36 months. Once 12-24 wells are drilled and produce for 24-36 months, then we will all have a much better idea as to the strength of the  Utica and Marcellus Shale in Eastern Ohio. The Utica is especially a good shale play since it has oil in it and oil is and has always been king in the energy business. enjoy the current and the future prosperity coming your way. You're sitting pretty Eastern Ohio, enjoy the ride.

Permalink Reply by scott jackovitch on January 25, 2011 at 1:13am

James,  do you believe the drilling will be as active here as it has been in some of the counties of PA ?  I recently signed up with CHK and was wondering how you know they are going to be drilling 12 to 24 wells in our area ?  Is the Utica shale going to be more profitable than the Marcellus ?

Permalink Reply by James Harber on January 25, 2011 at 4:47am

I believe that over the next 24-36 months you will see real signs of multiple drilling in Eastern Ohio. If you can afford to wait, you can get higher lease offers, but I do not think you will see any offers higher than $2,500. per acre, I could be wrong about that estimate, time will tell. I have a source in chk that told me they have gotten 60 permits to drill wells in Eastern Ohio in 2011. In Northern PA in the heart of the Marcellus Shale play, CHK started drilling in 2007 and things really started hopping in 2009 and blasted off like a rocket in 2010. So, far, for 2011 they have 5,600 drilling permits been issues in PA. I was told by a very good source a few weeks ago that over the next year more than 100 new drilling rigs were coming into northern PA. I don't know about you, but to me that tells me drilling is here to stay for many, many years to come. The Utica has great potential to be more profitable than the Marcellus, but again we need 24-36 months of production to know what those numbers will be for sure.

Permalink Reply by scott jackovitch on January 25, 2011 at 5:07am

Thanks  James.

Permalink Reply by Josh on January 20, 2011 at 5:25am

I was looking into our neighbors offers across the big river in Washington County PA and they are saying that 2000 an acre 15% is a bad deal?  They were saying things like 3000 to 4000 an acre 3 year lease and up to 18%.  Any of you are welcome to look further into this.  I was just trying to get a feel of what our neighboring shalemen were getting.  I am not saying we should get the same yet but based on history we could see figures like this.  I dont think the utica knows where statelines are or cares.

Permalink Reply by Cathy Galbraith on January 25, 2011 at 2:12am

We are getting the now or never approach from Cheaspeake now.  That 1500 and 15% with any

addendums we need is as good as it will be from them.  Any news from the group of attorneys

from Steubenville that are trying to put a large group together for offers?  We are in Harrison

County. 

Permalink Reply by Nate on January 25, 2011 at 2:23am

Chk realized when these lawyer groups were putting together these big bid packages that they were the only ones bidding. So I don' t think anyones going to see the big numbers anymore until some other interested players come in.

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