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Permalink Reply by Ann Ticopa on May 12, 2010 at 5:28am

Bloomberg Businessweek [ http://tinyurl.com/2fv9gzl ].

There are other articles about it, but that's the one that had the 3-12 month estimate.

Talisman is also going to be releasing financial information over the next couple days. They do expect to be producing more MS gas this year but spending less.

"The company [Talisman] said it has significant flexibility in its shale gas investments due to relatively low lease retention requirements. If the low natural gas price environment persists, Talisman expects to lower its gas-directed shale spending in North America by one-third next year. Based on this, capital spending for 2011 is projected at C$4 billion."

Wall Street Journal [ http://tinyurl.com/29wklyr ]

In other words, Talisman isn't going to have to do as much drilling to hold leases.

Permalink Reply by Donald J Neilson Jr on May 12, 2010 at 3:50am

Here's the article from Reuters:

UPDATE 1-Chesapeake sees at least $2 bln from asset sale
Tue May 11, 2010 11:14am EDT

NEW YORK, May 11 (Reuters) - Chesapeake Energy Co (CHK.N) said on Tuesday that it expected to receive at least $2 billion from the sale of a stake in its Marcellus Shale properties as part of its latest plan to raise cash.

Chesapeake announced on Monday evening that it planned to raise money to pay down $3.5 billion of its debt, which totalled more than $12 billion at the end of March, to raise its credit rating.

Based on prevailing prices for properties, the company's net asset value should be $56 billion, far higher than its current $14.3 billion market capitalization, Chief Executive Officer Aubrey McClendon said.

"We believe the only remaining obstacle holding us back from achieving an equity valuation closer to this $56 billion of net asset value is our debt load," he said on a conference call.

The company will sell a 20 percent stake in its Appalachia business, which includes the Marcellus properties, and has placed $600 million of nonvoting convertible preferred stock with a unit of Singapore state investor Temasek Holdings [TEM.UL] and Chinese private equity firm Hopu.

Temasek and Hopu also have the option to place another $500 million worth of Chesapeake preferred stock.

Chesapeake's debt has ballooned in recent years as the company has grown into one of the largest U.S. natural gas producers, but as the price of this fuel weakens, it is now turning to produce more oil and liquids.

McClendon said the company's growth plans would make it far more valuable in the coming year, even as he downplayed Chesapeake's debt load.

"I think that to build a stronger financial foundation will give us the opportunity for people to stop worrying about whether or not we're overlevered by $3 billion or $4 billion, which frankly is a bit of a rounding error in the ultimate scheme of things," he said.

Shares of Chesapeake rose 2.5 percent to $23.67 on the New York Stock Exchange. (Reporting by Matt Daily; Editing by Lisa Von Ahn)