lease extension

People around us  all leased to CHK are recieving letters to entend the lease for 2 years @ 500 an acre, everything in the original lease stays the same, however there is still a year and a half left on the lease. I could see 2 or 3 months before it expires but not this early. any ideas?

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Replies to This Discussion

Permalink Reply by G S Gass on December 14, 2011 at 1:21pm

I'll bet CHK has uncommitted funds in their 2011 budget.  Could be a signal that the 2012 and 2013 lease acquisition budgets have been trimmed.

Regards,

G S Gass

Certified Professional Landman

Negotiating better agreements for Landowners/Lessors

Permalink Reply by JRW on December 16, 2011 at 11:52am

Thanks VG.. our lease cannot be extened after 5 years unless they

 hold by production. We are not in a unit and the closest well is a at least 2 miles away.

My guess is they are trying to buy time untill the Marc 1 pipeline is completed so they they dont have to renegotiate a new lease.

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