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Permalink Reply by wyalusing jim on May 2, 2013 at 10:06am

i dont think that they were all "unused" leases. there was a well or two included in the sale i think.

essentially, chk got rid of acreage that they no longer wanted. swn wanted at least some of it, and they got it cheap.

as far as the "what now", unless those folks whose leases were sold have a pretty good idea of the prospectivity of their shale, it's gonna be wait and see what swn does in the next couple of years. those leases might not have too much time left before expiration.

one thing is pretty certain, at less than 600 bucks an acre, it aint all top notch shale. but maybe swn thinks that they got a bargain. (from chk? lol)

i'm pretty sure that they definitely wanted the tioga county acreage. that area is right next to a bunch of swn acreage already drilled. they know what that land is worth.

the northern susquehanna acreage is again near an area that they have already explored. probably they think some of that land will do ok.

same with lackawanna county, swn has wells near some of that acreage.

maybe a little of the wyoming acreage too.

luzerne? nah.

columbia? uh uh.

wj

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Permalink Reply by mark ayers on May 2, 2013 at 11:22am

Drilling down, but gas industry here to stay
BY DAVID FALCHEK (STAFF WRITER)Published: May 2, 2013

http://thetimes-tribune.com/news/business/drilling-down-but-gas-ind...

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Permalink Reply by Shower Bath on May 3, 2013 at 3:43pm

Chesapeake sells another acreage package, this time in SW Pa. The article does a good job of breaking down the lease values and touches on the leases which will soon be expiring. See the link....

http://seekingalpha.com/article/1399251-chesapeake-sells-another-ma...

Randy

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Permalink Reply by Shower Bath on May 4, 2013 at 9:29am

If you live in Pa. or are leased with Chesapeake, you should read the above linked article.

Randy

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Permalink Reply by Edward Sekerak on May 5, 2013 at 1:12am

Based on that article the big money for leases in western Pa. may be gone:

"Excluding the 42,000 expiring acres, the remaining ~56,000 undeveloped Marcellus and Utica acres are valued at approximately $1,071 per acre. If only 25,000 "core" Marcellus acres were counted, the valuation would imply $2,400 per undeveloped acre. Both metrics are a far cry from valuation levels implied by precedent transactions just a few years ago which were often priced in the $4,000-$5,000 per acre range or higher."

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Permalink Reply by Jim Litwinowicz on May 5, 2013 at 3:19am

On another but related thread, someone posted which counties the parcels were in and that much of this acreage is not at all productive but I can't find that thread now.  Can anyone help me out as it had some great info about this (fire)sale.

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Permalink Reply by Tom R on May 5, 2013 at 3:35am

I think this is the thread you had in mind....

http://gomarcellusshale.com/forum/topics/southwestern-energy-buys-1...

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Permalink Reply by Jim Litwinowicz on May 5, 2013 at 9:54am

Yep, that is it.  Thanks Tom R

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Permalink Reply by mark ayers on May 6, 2013 at 12:53pm

Received a certified letter form CHK today asking for consent to assign our lease to Southwestern. Our lease allows for this, but we have to be contacted so we know who owns our leases.  It asks for a response in 15 days or a non reply will be deemed as consent.  The letter says to sign and return in the enclosed stamped self addressed envelope, but there's no envelope and no stamp....things most be tight in Oklahoma...I not giving back the hats either..

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Permalink Reply by Shower Bath on May 8, 2013 at 1:42pm

Chesapeake - Pa Marcellus lease discussions. See the link for a well written article on what leased acreage is worth.

http://seekingalpha.com/article/1411841-marcellus-mississippian-per...

Randy

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