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Permalink Reply by Ladyoaks on July 10, 2008 at 23:38

Many of the major research analysts are expecting a major update from Chesapeake at some point in the 3rd quarter (or within 2 1/2 months from now). You probably knew that, but that is what I am hearing...And, maybe most importantly, a great reason to wait and see the results.

These guys have a TON more info than we do...and they are leasing up (or trying to) like crazy!

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Permalink Reply by Snake Stewart on July 11, 2008 at 1:36

This process , compaired to the Barnett , is moving at light speed ! Far faster then most could imagine. If additional good news is released ,this will only speed up the process even more ! If that is even possible .

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Permalink Reply by pilgrim on July 11, 2008 at 3:26

I veiw no news as good news because, if there was any discouraging news you better believe they would release it. They would love to lowball this play as much as possible.

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Permalink Reply by Snake Stewart on July 11, 2008 at 4:53

When well reports are released like the EGP #63 it drives up offers . Without additional info releases ,they can try to skate around like nothing is happening. It makes it much more difficult when they hit another biggie!

You are right on point in my opinion about discouraging news. I bet a part of them actually want to hit a dry hole to try and slow this bonus momentum down! They are chocking back wells and withholding info as it is. They could take out an ad right beside their other ad's that said " We are proud to announce that we hit a dry hole, now we hope we will be able to pay you less money.Maybe we can stretch it enough to make you think your land is totally worthless!"

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Permalink Reply by insomniacnla on July 11, 2008 at 5:05

I read that the Chesapeake CEO stated that he is going to have a press release statement update type thing on August 2 or August 3. I can't remember the date exactly. At this event, he is going to release all the production numbers that we have been waiting for. The CEO stated a few weeks ago that he is withholding the production numbers so as not to help out the competition in any way. I don't think I believe that is why CHK is holding the reports but at least we only have a few more weeks to wait.

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Permalink Reply by insomniacnla on July 11, 2008 at 5:13

From what I have read, McClendon states he does not want to give the production numbers up just yet because he does not want other companies benefiting from the knowledge of where the best wells are producing, what procedures CHK is using to get the best results from the wells, etc.

My guess is that is probably sort of true but it also helps CHK gain more leasehold in the area at a lower lease price.

I am NO expert. Just a secretary. :)

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Permalink Reply by jr on July 11, 2008 at 5:27

i dont think anyone would take a low lease price at this stage in the game. we were told for days that we were on the edge of the area of interest that everything south of our property in sabine par. was worth less than ours. we signed aprox a month ago two weeks later prices were triple 10 miles south of us. all these leasing co's use FEAR fear that you are going to miss out. i think everyone's situation is different but if you can afford to take a chance wait as long as possible.

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Permalink Reply by Les Bamburg on July 11, 2008 at 8:33

I believe that cat is out of the bag!! This may be more relevant for wells drilled in the south and east by other operators in the expanding areas.

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Permalink Reply by Les Bamburg on July 11, 2008 at 8:25

SG, the better question is why do you think companies would ever want to report the test volumes? There are two potential reasons. One is to improve the company valuation (ie stock price). The second is if the information leaks causing an impact on stock price then regulations require disclosure.

Otherwise the information puts the company at a competitive advantage in acquiring open acreage. This is the case for offshore leases that are auctioned from the federal government.

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Permalink Reply by MTA on July 11, 2008 at 7:33

We have heard that Petrohawk isn't reporting on 4 or 5 wells and paying huge fines for doing that. Does anyone have any further info on this?

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Permalink Reply by pilgrim on July 11, 2008 at 9:08

State permits show that there have been 17 wells drilled in the last 6 months in the Elm Grove/ Sligo area. One of the reasons we have not heard the production of these wells is to keep the leasing prices of land a small as possible. There is too much interest and activity in this area!!!!!!!

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Permalink Reply by Ladyoaks on July 11, 2008 at 21:34

Les raises a good point. The ONLY reasons these companies will report this information...and the only reason they DID report this information...is because it was deemed "material" to the overall mix of information about the particular company. Therefore, the results of one or a handful of wells will not necessarily be material to the overall mix of information and therefore may not be ripe/required for disclosure purposes. If enough wells are proved up, then disclosure will be required to be forthcoming for sure.

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