“A company like Chesapeake will only drill on about 6 to 8 percent of the land it has leased. Meanwhile Halcon intends to drill on nearly all the land it invests in,” Brumbaugh said.

Is this sound like the truth?  6 to 8 percent?          Wow, no wonder chesapeake is targeting certain areas!

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Permalink Reply by petej on May 17, 2012 at 4:10pm

Donald

Maybe I missed something, where did you get this?

Permalink Reply by JR on May 17, 2012 at 4:31pm
It's probably safe to say CHK has bigger fish to fry right now don't jump on board with some no-name with hopes to be drilled sooner. There are lots of sharks in the water DO YOUR HOMEWORK !!!
Permalink Reply by Don C on May 20, 2012 at 12:20am

Pete,

It was in the Warren Tribune  the same day of my post

Permalink Reply by Samuel J. Orr on May 19, 2012 at 4:31pm

Nonsense, go look at financials of Halcon. Just leasing their first 27000 acres will cost them over $100,000,000. A Reuters artcile dated may 11, quotes CEO as saying plan is to accumulate a bunch of leases to build up the company and then sell the company or perhaps he means the leases several years down the road. I was not very impressed when I went to Yahoo finance and entered HK in the quote box. Recommend you do the same and read the five or six articles which have links toward bottom of page. Another possibility is that Halcon will sell these leases in the near future to a really big player like BP or Exonn-Mobile for substantially more than what they have obligated themselves to pay for the 27000 acres they have just offered on.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 20, 2012 at 3:46pm

Everyone hates lease flippers yet they sign up with CHK willingly.  They're nothing more than a shale real estate company.

Permalink Reply by JR on May 20, 2012 at 4:49pm

I've called them flippers all along--well, once I realized what they were all about.  Sadly (or thankfully depending on which way you look at it), CHK swept in first, and got many folks' hopes up, and made a few wealthy with signing bonuses. And in the Utica with a couple wells, got the country's attention. Now, their true colors have been revealed. I recall reading a few shrewd posters' comments way back, and they pointed out to CHK's hype within other plays.  It always stuck in my brain and has held true.  They are the biggest land men of them all.  BUT, you can not deny the geology of any play.  It is what it is. I still choose to watch the action in the Utica, vs this site's gossip.  

Permalink Reply by Dark Sonnet on May 21, 2012 at 7:14am

I agree with your assessment of the situation.  Once a landman, always a landman and now a landman CEO gone rogue.  CHK's problems aren't going away anytime soon and there will probably be a few more shoes to drop in the process.

I choose to "follow the money", not the hype of McClendon.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 21, 2012 at 7:50am

I agree with you except for one thing: McClendon isn't a CEO gone rogue in the eyes of his sycophants.  To us normal people who know that you can't endlessly spend money without some sort of eventual profit it looks rogue, but to the people of that company it was sound business.  Crazy.

Jim ShoosPermalink Reply by Jim Shoos on May 21, 2012 at 8:11am

To those of us in the industry who have friends and acquaintances that went to work for CHK we call it the "drinking the Kool Aid Syndrome".  Otherwise normal acting people suddenly starting believing that the McClendon way is the only way.

I always half jokingly said that I would love to go over to the CHK corporate offices and smell how fragrant their bathrooms must be... since their crap doesn't stink. 

Permalink Reply by Dark Sonnet on May 21, 2012 at 8:23am

At least "sound business" as long as they were not incurring huge debt. ;o)

It is crazy.  Do you have the impression that no brakes were being applied, or even attempted by the board, even after some of the first disclosures? 

Well of course, there is that little matter of McClendon also serving as chairman...

Jim ShoosPermalink Reply by Jim Shoos on May 21, 2012 at 8:35am

JR can defend him/her self, but my reading of the comment is that the reference was to the fact that CHK had only drilled a couple of Utica wells when it began to leverage the production results in the press.  It wasn't a reference to how many wells have NOW been permitted or drilled by all the various producers active in the Utica.  CHK has never been shy about hyping results (sometimes prematurely) in order to pump up their stock or for their efforts to promote a partner on the venture.

Permalink Reply by JR on May 21, 2012 at 8:37am
I meant CHK drew attention to the Utica with the big announcements of initial well results last year. Statements like, or similar to "best well ever, better than Eagle Ford," etc. I don't disagree with your numbers.

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