Chesapeake Energy Corporation : Announces Significant New Discovery in the Hogshooter Play of the Texas Panhandle and Western Oklahoma

http://www.4-traders.com/CHESAPEAKE-ENERGY-CORPORA-12055/news/Chesa...

http://www.streetinsider.com/Corporate+News/Chesapeake+%28CHK%29+Sp...:

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Permalink Reply by Kathleen on June 1, 2012 at 8:33am
So does this mean CHK runs from Ohio like they did from PA with all their rigs. The volume sounds huge and it would seem more money would be made there.
I did read the land there is HBP but profits are profits.
All I got from the second link was a comment area.
Permalink Reply by Dark Sonnet on June 1, 2012 at 8:55am

Or is it AM beating a drum on a Friday afternoon in an attempt to redirect the public/shareholder focus on CHK's financial (and other) woes?

Is he seeking JV partners?  Pumping it as a valuable asset now on their books?  I don't know.

(Sorry about the second link - not sure what occurred there)

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on June 1, 2012 at 10:48am

How about this...he held his cards close to his vest...like every successful businessman!!! Just like when he purchased $25 million dollars worth of natural gas mineral rights in a $250 million dollar partnership with KKR. Your only looking at the surface...the real game is played in the deep waters.  

Permalink Reply by Dark Sonnet on June 1, 2012 at 1:17pm

Yes, and AM & CHK may soon have sharks swimming in the "deep waters".

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on June 1, 2012 at 1:24pm
No blood...no sharks. Your listening to the noise...meanwhile the strategy is unfolding right before your eyes.
Permalink Reply by Chartist on June 1, 2012 at 2:52pm

He has to raise $7 billion fast.....He's trying to make silk purse from a sow's ear....

Permalink Reply by Dark Sonnet on June 1, 2012 at 3:44pm

He might want to outsource that project to China...

The Oil India 1.3B deal is being paused until they "consider Chesapeake's corporate governance issue".

http://www.bloomberg.com/news/2012-05-28/oil-india-to-consider-ches...

"Chesapeake May Need to Part With Prized Assets to Make Ends Meet
By Ryan Dezember
WSJ Blogs

At the start of the year Chesapeake Energy embarked on a mission to pare debt, plug a funding gap and hasten its move from gas fields to oil basins by selling up to $14 billion worth of assets.

Now it may have to settle for just plugging the funding gap.

The Oklahoma City energy producer must raise at least $7 billion through asset sales before the end of the year and another $2 billion next year to comply with credit-line covenants, Jefferies analyst Biju Perincheril wrote in a research note Tuesday. Those numbers assume Chesapeake won’t meet any of its debt-reduction targets and will have to sell some of its prized assets, oilfields in which it plans to ramp up drilling.

To plug its funding gap, the analyst expects the sale of Chesapeake’s Permian Basin fields in west Texas to bring in $5 billion and a joint venture it is shopping on its Mississippi Lime fields in Oklahoma and Kansas to raise $500 million in cash.

“Beyond these, there is not much visibility,” wrote Perincheril and Chesapeake is still more than $1 billion short of the amount he believes the company needs to raise. To come up with the remainder Perincheril thinks the company may be forced to part with some of its “prized assets” in undeveloped oil-shale fields in Ohio and south Texas.

Those are precisely the places where Chesapeake wants to drill. The company is trying to lessen its dependence on natural gas, which is trading near all-time lows. Those fields would provide Chesapeake with more oil to sell.

But in the end, Chesapeake may not have a choice. Its other options for raising capital may not materialize.

Chesapeake plans to spin-off its oilfield services subsidiary, filing plans with the SEC to raise $862.5 million in an IPO. But the current “market environment” makes that deal “unlikely,” Perincheril said. The unit, Chesapeake Oilfield Services, derives nearly all its income from working for Chesapeake, which is cutting back on drilling amid its financial woes.

Raising cash by selling future oil and gas production up front “could be limited by the need to maintain certain” cash flow levels required by the company’s credit-line covenants, Perincheril wrote. And there are hitches involved in Chesapeake selling pipelines to its publicly traded subsidiary Chesapeake Midstream Partners, he said.

Chesapeake shares, boosted by activist investor Carl Icahn disclosing at 7.6% stake later Friday, recently traded 3.2% higher at $16.32."

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on June 1, 2012 at 3:53pm
I see you are still listening to the noise...all the pundits think they have all the answers, but in reality they're driving in the fog.
1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on June 1, 2012 at 3:05pm
They're already made and shipped...they're just waiting to be stocked on store shelves.

Chesapeake owns approx. 30k acres in the Hogshooter play and estimates its position contains at least 65 more locations to drill.

Chesapeake had none of the 65 potential future Hogshooter wells classified as proved reserves in the company’s 3/31/12 reserve report.
Permalink Reply by Frank Nesmith on June 2, 2012 at 6:41am

What are they doing in Western Pa now? Beaver County area? Are they walking away from that?

Permalink Reply by craig on June 2, 2012 at 7:44am

They are not walking away in Beaver County. They have way too much invested in leases that are starting to expire and need to drill. They may have scaled back some, i don't know. They are fracing wells as well as drilling.

I hear the construction of the gathering pipeline should be starting soon.

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