(Flashback) BREAKING NEWS: Notes from Chesapeake's Conference Call
Chesapeake Conference Call July 2, 2008 9:00am
Chairman/CEO Aubrey McClendon (Summarized)
• Win-win partnerships between Chesapeake and PXP - Great news for Chesapeake shareholders
• Haynesville 4th largest gas field in the world
• Chesapeake has invested $2.5B in Haynesville
• Play just underway, data suggest 250TCS
• Barnett had 50TCS, which is only 20% of Haynesville –
• Our country should realize how blessed we are as a nation, especially during this time of record high gas prices – can be very helpful in converting to hybrids
• We are so confident because 3.5 M acres defined as core area
• These wells are in a class of their own – calling them “triple X monsters” – likely to get better over time – 8th well, 2 days ago brought on the best so far: 4.5-8.5 BCSE
- claimed that the reason for withholding info was to prevent other companies from receiving a blueprint to their technical practices
- 4 corners work from all the companies that have outlined the shale from their drilling.
- Haynesville Shale will move quickly.
- PXP retains the ability to sell their interest in the HS
- Do not forsee selling hshale--wanted to buy more
- Chesapeake retains first right of refusal
- Ches - 4,000 landmen in the HShale - 1,000 in Barnett, scouring the field.
- Dollars per acre was set by Ches.....$30,000 per acre....paid that price because Ches is going to agressively work HShale to increase the rate of return, deploying PXP capital smartly was the goal.
- Mix of Shale and Sands? Looking for 100% shale...looking for great black shale with the right porosity and organic composition. When you hear the flow rates their will be skepticism but it goes back to the high rates of pressure. The consistency and simplicity is the reason for the dynamic production.
- Flow rates - what are the infrastructure restraints? On top of the game large structure that handles other plays so will be moving fast. We are east so we are closer to the markets...so better pricing. Do the math and HShale could do [better? He kinda trailed off here] because we are closer to the eastern markets.
- Great opportunity for the US to retrofit gas stations and use natural gas instead of foriegn oil.
- Potentially liberating event.
- Here in the HShale we may have 10 years of production.
- 60 rigs operating by 2010
- Play could not be in a better spot.
- Regulatory structure that is favorable
- Great pipeline structure...past many bottlenecks will help this happen much more quickly. Do have to extend supply lines...this helps drive down costs.
- Working through Twin Cities in Shreveport..has put togther an impressive organization..has a network set up..tough sledding to go door to door to buy leases.
• PXP partner – deep LA roots helpful as they develop Haynesville in the decades to come – if you snooze, you lose and Ches is not snoozing - Haynesville will develop similarly to Barnett but also differently – it will be easier than Barnett in some ways
Tags: Chesapeake, Haynesville, Shale
Views: 659
Replies to This Discussion
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Permalink Reply by Johnson on
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Seems like they would get killed in court if they did that...big time punitive damages plus the money they owed, plus interest, plus all attorney fees and court costs.
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Permalink Reply by Snake Stewart on
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Now that there are hundreds upon thousands of landowners (mineral owners)in our area, voters as well, that would be troubled to hear of such deads ,I believe the public outcry would be tremendous. Big O & G, as greedy as they are wouldn't be stupid enough to try that crap nowadays! Little o & g on the other hand.......? Who knows ?
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Permalink Reply by Les Bamburg on -
SS, please just ignore Kenny & MG as it is obvious neither one knows what they are talking about. That type of behaviour vanished after the 1930's and the development of the East Texas Field.
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Permalink Reply by Kenny on
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Sure Les B , I haven't been in the business 20 years to not know what I'm talking about. Hide and watch
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Permalink Reply by Les Bamburg on
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Kenny, you may have been in the business but your comment below seem to indicate you do not have a good understanding of nonconventional gas reservoirs such as the Haynesville Shale.
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Your right, no understandiong of the Haynesville Shale, in fact, does anybody??? Good Luck !!
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Permalink Reply by Mark Gray on
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And it is even more obvious that you have never heard of "sarcasm" because my post was dripping with it.
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Permalink Reply by Randy on
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After a well is drilled, before it goes online, the Conversation commisioner department (something to that effect) actually verifies via mudmapping(gps type technology) that the well goes where it is supposed to go. If there is anything over a VERY small tolerance, and especially if it goes out of the units at any point, they lose the well. Capped and not allowed to be used, period.
Randy
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I was beginning to think no one read my comments...You guys take care, like the song says, it's 5:00oclock somewhere. Well it is here in Saudi as we type..have fun
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All i'm saying is, gas will escape from the first break it gets, weather its on your proerty or 2 miles down the road. So they will get it--and yeah, i do think you like to hear yourself speak.
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As long as you are still listening to my voice, thats all that matters to me right now! You are entitled to your opinion Kenny,even if its wrong! That is one of the things that make this country great.Maybe you have been in Saudi too long, helping those same gas heads that are trying to cripple our economy, to remember this.Why no response to the leverage questions ? Why just the cheap little pecks on the cheek.Does it surprise you that some may actually be getting ready and are constantly revising their strategy. Is big O & G the only one that can have a strategy ? The Barnett has benefited O & G in many regards but it has become a bright beacon as well for many still unsigned on the Shale. And fortunately for us , those CEO's like hearing themselves speak almost as I do. Have a great one Kenny ole' boy !
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