Replies to This Discussion

Permalink Reply by c f on October 28, 2008 at 3:45

our lease bonus has not been paid either. We were to receive our check on Oct 23rd only to be told they, chesapeake, were not honoring our lease and wanted to reduce our price per acre from 15,000.00 to 3,500.00. Now we really don't know what to do. Attorney, wait and see, I just don't know.

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Permalink Reply by Huntsvegas on November 12, 2008 at 12:37

They actually changed the bonus amount after you signed the lease?

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Permalink Reply by SL on October 28, 2008 at 12:10

I was told I would get my check when I signed the lease. It was supposed to be 30 days from when I signed my letter of intent. It was 60 days, and at that point, I was told they did not have a check and would call when they did. The lawyer can't give me any time frame for when I should get the check. My dad signed his letter of intent at the same time, for a much larger amount of acreage, and he has not been called to sign his lease yet. They say it is "in review".

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Permalink Reply by Two Dogs, Pirate on October 28, 2008 at 12:33

This just shows the problems that happen with letters of intent. Everyone wants to be a Landman but many don't know what they are doing including lawyers. The only time that I have ever done anything like a letter of intent is when there are title problems that the suposed landowner doesn't have proper title going into the agreement and this is extremely rare. Be aware of the Trojan Horses.

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Permalink Reply by insomniacnla on October 28, 2008 at 13:32

Chesapeake's landmen told me that Chesapeake required the Letters of Intent before Chesapeake would invest the manpower needed to do a thorough title check. At least two of the subcontractors for Chesapeake, JPD Energy in Shreveport and Paramount Energy in Lafayette, apparently used the same form or very similar forms for the Letters of Intent.

Is this how other companies are handling the leasing? I did not know if it was standard business or not.

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Permalink Reply by landleaser on October 28, 2008 at 14:34

Chesapeake is not going to pay any drafts until January. If you have a draft and it is due between now and the end of the year. You will not see the money until January. Chesapeake's primary source of working capital WAS Lehman bros. So they are in a serious cash crunch right now. Also, you can hope that bonus amounts will bounce back to the level they were this summer but folks IT AINT HAPPENING. The competition is not here to drive the prices up and the market just wont justify them anymore.

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Permalink Reply by MALCOLM WHORTON on October 28, 2008 at 15:41

I was told by Manna Acquistions that I would be paid in January.Then they said it would be in about four weeks then they change to two weeks now it's two more weeks .I just wish they would tell the truth and I would'nt mind waiting I signed my lease on 09/18/2008 talk to them today they said they were waiting for money from CHK.

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Permalink Reply by MarshallGirl on October 28, 2008 at 17:52

Landleaser,
We signed a lease with Chesapeake, got a 45 day draft. That has been 21 days and can't get in touch with landman. Do you have info that they are really going to honor the drafts in January? I have tried several ways contacting the landman, just asking the question if the rumors that I heard that the drafts may not be honored is true. I have just been looking for a straight answer.

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Permalink Reply by landleaser on October 29, 2008 at 4:47

I cant tell you for sure that they will be able to honor the draft in January. But I'm sure they will unless there is further chaos in the financial markets. Chesapeake was simply caught between a rock and a hard place. They had an enormous amount of unpaid drafts out and suddenly their primary source of working capital was gone. It takes a while to secure that kind of funding and they feel confident they will be able to in January.

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Permalink Reply by david on November 3, 2008 at 18:33

I signed with Chesapeake, without a letter of intent, so that sounds bogus to me. I was paid with a check, not a draft, thank goodness! My mother signed with Chesapeake, for 6k more an acre than I received. She was paid with a draft, and a few days before it was to pay, Chesapeake sent everyone in her group an email saying they could not honor the drafts until the first quarter of '09. Additionally, I have heard from an informed source that Chesapeake may not survive much longer. So much for going with the big dog!

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Permalink Reply by Eric Camp on November 4, 2008 at 1:05

I don't think Chesapeake is going away any time soon. I think they are just trying to line up more credit facilities before spending more money. JMHO.

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Permalink Reply by Grice on November 4, 2008 at 1:22

Informed source? To which does that source evaluate such claim? I am unable to locate supporting evidence, but ample of the contrary. If you have confidence in your source, please share in the details of that evaluation. Thanks.

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