Whats going on with Utica being sold off?

I am not a subscriber so I can only give part of the story but it looks like something is wrong! Could these sales have a alternative reason such as trying to make gain and hide the money in case Obama is reelected?  Could it be another country is actively seeking exploration and sucking the drilling tech and experience away for the US? Could it be the Utica is way overplayed to draw investment which is funding say drilling in North Dakota for example?

EnerVest selling large chunk of Utica holdings
EnerVest Ltd is selling a big piece of its oil and gas holdings in Ohio's Utica Shale for more than $6bn.

Privately-held EnerVest, with its publicly traded EV Energy Partners LP, plans to sell 539,000 acres by the end of the year that would be the largest in the company's 20-year history, according to The Wall Street Journal.

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Permalink Reply by Billy Park Whyde on September 17, 2012 at 2:52am
Permalink Reply by Billy Park Whyde on September 17, 2012 at 9:56am

  Conspiracy theories, not really. i threw out a couple of ideas as I would believe their gas to be a reason why they are going to do it.  With all the hype about the Utica  I do not see activity that I would expect  happening in Ohio. The rig count remains steady no big increase as we thought there may have been this spring. Oil prices are back on the climb but we only hear for the most part WET GAS and those prices have fallen. We have not seen or heard of the BIGGIES jumping in with both feet .

  Sorry but I am having doubts as to the UTICA being  compared to the Prudhoe Bay  as has been stated. 

Permalink Reply by Ron D. Jockefeller on September 17, 2012 at 3:30am

For every seller in a transaction, there is a buyer on the other side.  Let's rewrite your post from the point of view of someone who took his anti-depressants today.

What's going on with the Utica being bought up?

Posted by Willy Park Bhyde on September 17, 2012 at 10:42am in General Shale Discussions


I am not a subscriber so I can only give part of the story but it looks like something great is about to happen!  Could these purchases have an alternative reason such as trying to buy cheap and pick up acreage before Obama is reelected?  Could it be another country recognizes the value in this acreage and is going to pay up for it?  Could it be the Utica is way underplayed and is drawing investments that were going to fund say drilling in North Dakota for example?

Someone is buying large chunk of EnerVest's Utica holdings

Someone is buying a big piece of EnerVest's oil and gas holdings in Ohio's Utica Shale for more than $6bn.

Some company or group of companies will buy from privately-held EnerVest, with its publicly traded EV Energy Partners LP, 539,000 acres by the end of the year that would be the largest purchase from EnerVest in the company's 20-year history, according to The Wall Street Journal.

Permalink Reply by Ron D. Jockefeller on September 17, 2012 at 5:14am

CHK did a JV with Total and a second preferred equity deal with EIG, both in the Utica.  CHK is trying to sell a sizable position in "non-core" Utica areas, but so far has not sold it.

Permalink Reply by gary SWF on September 17, 2012 at 7:30am

Ron,.......Am I doing the math correct........$6bn for 539,000 acres???......=$11,131/acre????...I must have missed a zero or something??........Gary

Permalink Reply by Joseph-Ohio on September 17, 2012 at 4:44am

Flipping.

Permalink Reply by Ron D. Jockefeller on September 17, 2012 at 4:56am

Not really.  EnerVest has held the acreage for quite some time to target the Knox formation.  They readily admit they are not smart enough to be flippers.

Permalink Reply by Joseph-Ohio on September 17, 2012 at 7:17am

They're smart.

Permalink Reply by bo boboski on September 17, 2012 at 10:01am

"ener" as in energy.  "vest" as in investments.  EV is an investment group , specializing in energy related investments. They invested in the Utica play, now they are cashing in!    Heard recently that BP is in a huge buyout in the utica. could it be enervest?

Permalink Reply by Anastasia on September 17, 2012 at 1:23pm

Exactly right, Bo, that's what Enervest does.  They buy and sell, and buy and sell.  And then buy and sell some more.  CHK is selling their dry gas assets.  Just a lot of horse trading going on right now.  I heard Chevron was buying Antero, heard various and sundry companies were trying to buy Beck, Northwood, Oxford.  Heard Statoil was trying to buy everybody. 

Permalink Reply by Paul Geiger on September 18, 2012 at 12:49am

Sounds like a DAY TRADER to me

Permalink Reply by Joseph-Ohio on September 17, 2012 at 2:02pm

Just an observation:

I see a lot less responsibility and liability selling / flipping leaseholds as opposed to actually developing wells, infrastructure, etc.

Seems to me that this could be a very significant reason that things take so long to happen (development wise).

That's too bad if true - the way I see it, the longer things are stalled the worse off we all are, landowners and citizens.

I'm just sayin'.

 

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