Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on October 15, 2008 at 13:13

Tracking lease offers for the last 6 to 8 weeks, it appears CHK and HK have established a dividing line for their leasehold acquisition priorities. The line, oriented north to south, originates in mid-Caddo and extends through DeSoto Parish. To the west of that line, CHK remains active and to the east, HK likewise. As this trend became sufficiently defined as to be obvious, competition dropped off affecting the bonus offers prior to the drop in ng prices and the troubles with stock valuations and credit contraction. As long as that division remains, even an increase in ng prices and the return of available credit will not return bonus offers to the levels seen in the summer. The division is not absolute as CHK remains cautiously active in selected areas east of the line (Bossier). I have not noted any HK activity west of the line.

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Permalink Reply by Bobi Carr ("parker") on October 15, 2008 at 13:41

CHK already has a significant amount of HBP acreage in Bossier. I would love to know the well that they referenced in the presentation.

Do y'all make the same assumption that I do about the abundance of penetrations in North Bossier. There seem to be too areas of strong concentration. Looks like maybe they thought the first was the edge and then expanded it out from there, but why so many beyond that point. They make that area look like swiss cheese.

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Permalink Reply by Korie B2 on October 15, 2008 at 19:20

Someone said in this discussion that $20k leases were gone? Only if we allow that. We decide. It's our land. Maybe I'm just being naive.

Where patience fails, force prevails.

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Permalink Reply by Grice on October 15, 2008 at 20:32

I read a report stating that Chesapeake will not be leasing any more property, and will be considering selling some (25%) of their already acquired properties. The report does not state which properties they are considering selling, but the term "quickly-growing, highly-prized natural gas fields" was used.

In another report I read, BP is considering purchasing some of Chesapeake's properties. The report stated the majority of properties are located in Pennsylvania, and possible "other" locations. It is unknown if those "other" locations include the Haynesville Shale area.

As quoted in one of the reports "In many ways, we are largely done capturing what we set out to capture" and "...picture undeveloped natural gas properties as merchandise in a warehouse. You want to keep it moving, especially if you can sell part of it for as much as 10 times what you paid for it".

If Chesapeake has plans to sell their holds in the HS to BP, we might be in for more of a shock than anticipated. One of the reports indicated that BP is having problems with their Russian subsidiary. Purchasing Chesapeake's properties may be one solution for them.

Reports indicates that major oil companies are seeking to expand their investments into NG. This could be beneficial for all, as the oil industry has deeper pockets, and it may also help boost the implementation of CNG fueling stations.

Only time will tell if any of this is relevant to the HS, or how it may affect anyone around here.

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