"Caddo Minerals, Inc. Acquires Mineral Rights/Royalty Interest in Haynesville..."Chk Operator
If previously posted, please disregard:
http://www.prweb.com/releases/2011/8/prweb8724609.htm
Could the Haynesville Shale Mineral Rights be up for sale? At $4 or less/mcf could be a bargain.
"...Chesapeake's comments in its March 24, 2008, press release, there it stated the following about its new Haynesville shale play: 'Haynesville Shale: Based on its geoscientific, petrophysical and engineering research during the past two years and results of three horizontal and four vertical wells it has drilled, Chesapeake believes the Haynesville Shale play could potentially have a larger impact on the company than any other play in which it has participated to date.' ...Also Chk projected that a $7 per thousand cubic foot (Mcf) gas price for the life of a Haynesville well with an economically ultimate reserve (EUR) volume of 6.5 billion cubic feet (Bcf), the company would earn 42% pre-tax return. About a year later, with nat gas prices firmly locked in a $4 per Mcf range, the 'company' said the return would only average in the low single digits. The 'company' cautioned, however, that if the EUR was only 4.5 Bcf, then the return would be zero."
Quotes from article: "Musings: The Value Of Shale Gas Is In The Eye Of The Beholder"
http://www.freerepublic.com/focus/f-news/2764850/posts
IMO, Chesapeake has leveraged itself so far into the future, I hope Mr. Chesapeake has a fantastic crystal ball. $10+Billion in debt and nat gas prices going nowhere...
The Chk Haynesville, Up for sale? Something to ponder.
DrWAVeSport Cd1 8/22/2011
Views: 371
Replies to This Discussion
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Permalink Reply by DrWAVeSport Cd1 on
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Jay,
Agreed. I am quite concerned, however, after investigating for the past month, that Chesapeake is so leveraged, prices are so low, and Chk morphing into an "oil shale" producer, that the Haynesville could be on the chopping block. Just my opine.
Seeing Caddo Mineral's website, it could also just signal landowners' desires to sell out v. little or no mailbox moneys.
Thanks Jay, as always,
DrWAVeSport Cd1 8/22/2011
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Jay,
Agree. I hope you are right about the "not stupid" part. LOL Chk Security Filings and VPP (loans paid off with product, often used in place of loans to hide debt, although quite legal) deals with the banks and what those deals cost over the long haul...Why make them if you aren't in a "have to" situation? Just my opine. Bothersome to my way of thinking. But then I pay off my credit card balances monthly and retired at 55. Chk's debt looks so overwhelming to me, especially in this economic environment. Sept. 2008 to Sept. 2011, not rosy pic.
I just get a bad feeling about some things per Chesapeake. Maybe my old age LOL.
Thanks. Here's to Alternate wells!
DrWAVeSport Cd1 8/22/2011
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Permalink Reply by Spring Branch,mineral owner on -
Caddo Mineral's news release doesn't say how many acres they bought, nor does it say the Section, Township, & Range of the Royalty/Minerals purchased. In my view, it is likely an insignificant event designed to toot their horn.
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