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Permalink Reply by Ron D. Jockefeller on September 12, 2012 at 8:41am

It means they would rather have the capital from selling the non-core now then potentially more capital later from developing it.  Oil & gas companies have limited resources and will focus on their most prospective acreage positions, which they call core.  The acreage in non-core areas is worth somewhere between zero and less than core acreage.  

Additionally, sometimes a company will try to consolidate their acreage, which makes it cheaper to operate, and sell off some great acres that are not near the rest of their position.

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Permalink Reply by 2s72s0k9mm8gd on September 12, 2012 at 11:06am

600 million$ is only 40,000 acres @ 15,000/acre. Doesn't sound like much land to them....? Does anyone know how many total acres Chesapeke has sole lease rights to? Heck , single group deals have had this kind of acreage involved. Curious to know where this acreage is though.

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Permalink Reply by Kathleen on September 12, 2012 at 11:07am

Does anyone think part of the sales announced today are for the bundled acreage they had for sale in Ohio? I think all bids on that closed the end of Aug. Would that acreage be considered non-core? My mind jumped right to that when they said "in four seperate transactions chesapeake has recently sold or entered into purchase and agreements to sell noncore assets in the Utica Shale...."

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Permalink Reply by Ron D. Jockefeller on September 12, 2012 at 1:42pm

New data point:  the $600 million received for acreage in the Utica and other regions, $125 million was for acreage the Woodbine.  That leaves at most $475 million received for acreage in the Utica.  

My silly wild a$$ guess is $180 million for 40k acres the Utica and $295 million for areas other than the Utica and Woodbine.  Consume your salt now.

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