Are the big O&G players running out of capital?
I heard today that some of the big players i.e. Chesapeake, were running out of capital because of leasing up so much acreage in the area and that they were going to stop leasing and start drilling to raise capital. The person I was talking with said they were told that it would be after the first of the year before they would get their leasing bonus.
Anyone else hear anything like this?
Anyone else hear anything like this?
Views: 278
Replies to This Discussion
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Permalink Reply by Margaret Wren on
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Makes you wonder if the holes are dry after all. I always wonder if they say dry because they drilled just a tad short to hold the lease! I noticed on my section the "dry holes" are real close to active ones hmmmmm........... It wouldn't take long to go back in and pop that "dry hole" either, right before a lease runs out, I have seen that happen.
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Permalink Reply by Mit on
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Natural gas prices have gone down recently, but they are still high. I know some of these "dry hole" CV wells in the past were not dry holes. Now that NG prices are higher, it makes more economical sense to build the infrastructure and start producing them. Make some money now, hold the leases, then drill or partner with someone to drill HS at a later date.
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Permalink Reply by HBP on -
Dear CMI A1, you can call what I say "rhetoric" ....for now.
I'm just saying that there will be a slight stalemate in the field until reserves prove up. They will still pay great bonuses in some areas, but prices are not going to climb like the past couple of months. If I am wrong, then that's great, more money for the region. But if I am right...then you can come back on here and reclassify what you call "rhetoric".
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Permalink Reply by CMI A1 on
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I am not making any speech preperations for this site. There has been rhetoric spewed to land owners beginning before the announcement of the Haynesville Shale, and there is more everyday. I talked to someone this morning and listened to what a landman told them yesterday. The rhetoric is not going to stop.
A slight stalemate in the field? Prices have doubled in the last two weeks where I live.
Everything would stalemate if people did not stand up and tell others not take the rhetoric. If people just laid down and gave up their land, things would still be at $100 pr/ acre.
Recent history here shows that when people get educated, organized, and not be in a hurry, prices go up.
But if everyone and myself just kept quiet and let people like you say what you want and we just bowed down and signed what ever was put in front of us, then yes... prices would drop.
I refuse not to call out people like you that try to stand in the way of mineral owners getting a fair price for what belongs to them.
Mineral Owners- prices will continue to climb as you unite, educate, be patient, and not believe rhetoric.
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Permalink Reply by Gone Fishin on
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Right On!! If folks have the mind set that the o & g comanies have to come buy it from them now then they will sell for less than it is worth. Just because you own haynesville or bossier shale doesnt mean you have to sell it now either. I do believe this play is bigger than any one company can gobble up in one bite. otherwise chesapeake would have had it all before anyone knew it was here. I am willing to wait if I have to till someone wants to be fair. If we were talking oil or gold or platinum do you think it would be a good idea to sell just anytime or when the price is good. pawn shop prices wont cut it for me. I can hear it now. "ITS MY MONEY AND I NEED IT NOW!!!"
WELL MO POWER TO YA IF YOU CANT READ THE WRITING ON THE WALL..
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Permalink Reply by po boy on
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I personally am wondering why the o&g companies haven't gotten together and agreed to slow down the lease buying long enough to bring the prices back down to
somewheres near the pre "feeding Frenzy" values. How much of this is about control rather than actual value. Most landowners would have jumped on a hundred dollars an acre a year ago and did not even know or Care if they even owned their mineral rights.
The most immportant factor seems to be timing. getting the best contract you van before 80% of your neighbors sell and leave you force pooled.
This is proving to be an interesting study in human nature.
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Permalink Reply by RAY on
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remember 333:
I would love to be 'force pooled' , that's why my asking price is 333 [$30,000 / 30% / 3yrs].
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Permalink Reply by Two Dogs, Pirate on
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I heard that Chesapeake canned one of the larger lease broaker firms working in the Marcellas. The firm stated that it was due to the coalitions forming in the area running the price up.
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The possibility of pricing ourselves out of the market has been lurking in the back of my mind for several weeks. I have many times "walked away from the Table" in business negotiations to bring price down to what i was willing to pay, I wondered if that would happen here.
But then, what do I Know? I held Enron stock until the Certificates were worth more than the stock. (Laughing at myself) Some times you win, sometimes lose, It is a matter of timing and market value(real- not perceived).
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Permalink Reply by WJP on
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One thing I've been thinking about with respect to "market value" is the thought that landowners/mineral owners can look to the prices paid to the parishes and the state in the bidding process, or the prices paid between and among the companies for existing leaseholds. Landowners may be deluding themselves if they think that this sets a fair market value that should apply across the board. One reason that it doesn't is that, of course, in the dealings between companies, there are probably considerations being put into play that are apart from just the price paid for the leasehold. But one of the biggest reasons that I believe there is not the same comparison is that the state, parish, city and the other companies can guarantee and warranty good title to the minerals. Ordinary landowners cannot do this. Others here have mentioned that in the buying frenzy, landmen are buying up junk leases , and they'll discover a lot more property that is not really owned by the lessors that were paid, due to missing and unknown heirs, or bad survey lines, or squatters over the years who establish ownership, or any number of things that go wrong with title.
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Permalink Reply by Snake Stewart on
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I am thinking about starting my own club...........The tell them to take a hike till the price is right club! These guy's will continue to burp and coddle their golfing buddies no matter what we say or do. The only thing left to do is tell them NO ! Keep telling them NO! Even when they talk about pulling out , tell them NO! Until we as groups or even individuals learn how to pronounce that one word we will continue to see the smaller numbers.
Every time the city or parish numbers go up , so do mine.There is absolutly nothing that they can do about it but pay or leave. If they drill without it I will be the business partner from you know where!
I do not want to force pool but I do not fear it either! There is too much wealth floating around down there for me to fear getting left out.Besides that , I am bringing a lot of friends to this "Pool Party".
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Well said Jim,this game isn't for the faint at heart.
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