Rumor about CHK announcing important new find Q1 2011
Replies to This Discussion
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Permalink Reply by j garrett on
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Ol' Aubrey. What is he up to now? Here is a quote from only two months back.....
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HOUSTON, Oct 13, 2010 (Dow Jones Commodities News via Comtex) --
By Ryan Dezember
Of DOW JONES NEWSWIRESChesapeake Energy Corp.'s ( CHK | PowerRating) Chief Executive Aubrey McClendon said Wednesday that most significant natural gas and oil shale fields in the U.S. have already been found, and that investors shouldn't hold their breath for major new discoveries.
"If you decided, I'm going to pass on the Barnett, pass on the Haynesville, pass on the Marcellus, and you were going to wait for the next four or five--there won't be any," McClendon said Wednesday during the company's annual meeting with analysts, referring to tight, hydrocarbons-rich rock formations in Texas, Louisiana and the U.S. Northeast, respectively. "By the end of 2011 it will be over. There won't be any basins that have escaped investigation."
The comments come three days after Chesapeake agreed to sell a third of its interest in south Texas' Eagle Ford shale formation to Chinese state-run Cnooc Ltd. (CEO) for $2.16 billion in cash and drilling funding.
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At least he couched it by saying the end of 2011, right?
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Permalink Reply by Skip Peel - Mineral Consultant on -
IMO, Aubrey is not hinting at revealing a new liquids play. He is setting up an announcement of a CHK lease position in an existing play. I like Shalegeo's nomination of the Niobrara as a likely candidate.
The Niobrara has the potential to be the industry’s next large oil-shale resource play. Niobrara shales are prevalent throughout the Rocky Mountain region. A thick and continuous Cretaceous source rock, the Niobrara is rich in organics and thermally mature. It can range from 150 to 1,500 feet thick, with porosities from 4% to 14%. Total organic content ranges from 1% to 5%, and vitrinite reflectance is typically 0.6 to 0.9.
The Niobrara has produced for many decades from select areas that are naturally fractured. Today, operators are using techniques developed specifically for shale reservoirs to exploit the Niobrara. Recent drilling in the Denver-Julesburg, Powder River and North Park basins has attracted high interest.
Because the Niobrara occurs across so many basins and in varied geologic settings, its thermal maturity also varies. Some areas produce oil and others make gas, and others produce liquids-rich gas. In general, the formation is immature to the east and more mature to the west. Niobrara production ranges from shallow biogenic gas in its chalk facies in northeast Colorado, to gas production in the Denver-Julesburg Basin’s Wattenberg Field and the Raton Basin, and to oil in such basins as the Powder River, North Park, Hanna and Sand Wash. Portions of the DJ are also oil-prone.
One feature of the Niobrara thought to contribute to its productivity is its abundance of brittle, calcareous chalk benches. These make the formation more amenable to fracturing, whether by natural or artificial processes.
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Permalink Reply by North LA on
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I don't think it's the Niobrara. It would look bad for him to build up something that's already been anounced. Investment firms don't like boys who cry wolf and I'm pretty sure Aubrey knows that.
"Dramatically reduce leasehold spend in 2011: there are no
more new big oil plays on CHK's horizon that require CHK to
invest >$1 billion per play, as Eagle Ford, Niobrara and the
unnamed play all did in 2010"
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Permalink Reply by North LA on
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just the past 18 months, CHK has captured leading positions in 5 of the 6 best
unconventional oil plays in the U.S.
#2 in the Eagle Ford with 425,000 net acres and 2.4 bboe of unrisked unproved resources
#1 in the Niobrara with 800,000 net acres and 4.5 bboe of unrisked unproved resources
#1 in the Anadarko with 1,000,000 net acres and 3.8 bboe of unrisked unproved resources
#1 in the Permian with 675,000 net acres and 1.9 bboe of unrisked unproved resources
#1 in come 1H '11) with >1,200,000 net acres
7
an unnamed big play (details to
This strategy should lead CHK to ~$9.2 billion of ebitda in 2015 and an
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Permalink Reply by Skip Peel - Mineral Consultant on
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Pin this list to the wall and take out your darts.
Bakken Granite Wash Horn River New Albany Piceance/Unita Pinedale/Jonah Utica
There are other smaller and more obscure shales that are not often mentioned. I have done research on several for clients. Based on currently available public data, they appear to be marginal reservoirs being hyped by small energy companies.
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Permalink Reply by North LA on
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I think it's the Brown Dense but I'm biased.
http://www.corelab.com/rm/irs/studies/ArkansasLouisiana_Smackover.aspx
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Permalink Reply by Aubrey C. Sanders, Jr. on
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North LA,
I think you just might be right, REALLY. HO,HO,HO MERRY CHRISTMAS
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Permalink Reply by North LA on
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I hope I am but I may be totally off. This could be some Canadian prospect or even something in South America or China.
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Permalink Reply by North LA on
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You could be right GD. CHK has a lot of debt and they need capital but this isn't 2007 and the MAD MONEY types are bit more critical than they used to be when it comes to speculative investments. An announcement of a promising new play might bump up the stock a few dollars but most people will take the wait and see approach. One thing is for sure and that's CHK has to show they have significant oil reserves rather than strictly NG but they are going to have to prove those reserves produce before the dollars from Wall Street start rolling.
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Permalink Reply by olddog573 on
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Our property on the desoto natchitoches line was scanned last fall and was on the edge of the scan at that time. They are currently re scanning our property and taking it into northern Natchitoches and northern Sabine. I asked the CGG rep if they had messed up the first one and he said no that they had found something on the end of the scan and they were wanting to verify what they saw with a second scan. I asked if it was the Bossier Shale and he said no they already knew that was there. I asked who was paying for the scan and he said Chesapeake, Petrohawk Samson and Shell and they were looking for oil.
I know the oil rumor has been discussed at length on here as well as the seismographers telling tall tales. Just wanting to add my two cents to a very interesting discussion.
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