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Permalink Reply by Jo Ann Carter on September 12, 2012 at 2:27

I also read the article hoping to find that they were selling the Haynesville to another company easier to deal with. I did not even see a hint. Maybe things will get better for the company and then they will treat the landowners fairly.  Maybe!!

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Permalink Reply by Vernon on September 12, 2012 at 3:02

More Sell-Off

http://blogs.wsj.com/deals/2012/09/11/chesapeake-to-sell-texas-acre...

"Emerging oil and gas producer Energy & Exploration Partners Inc. said it has agreed to buy oil and gas acreage in Texas from Chesapeake Energy Corp for $125 million.

In a registration statement filed Monday with the Securities and Exchange Commission, the Fort Worth, Texas-based company said it signed a deal with Chesapeake to acquire 57,275 net acres in the Eaglebine formation in Texas. The agreement, signed Monday, is expected to close in the fourth quarter of 2012, the company said."

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Permalink Reply by dbob on September 12, 2012 at 6:21

interesting, thanks

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Permalink Reply by Greedy Landowner on September 12, 2012 at 11:43

They have a history of selling under priced gas to their own midstream business. I wonder if our prices will improve once the deal is completed.

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Permalink Reply by essay on September 13, 2012 at 14:18

we should all be so lucky.

go to hell chk.

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Permalink Reply by Bobi Carr ("parker") on September 13, 2012 at 15:09

I wonder if they are holding onto Haynesville because they believe it is a great asset.  I hope they aren't holding onto it 'cause no one else wants it.

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Permalink Reply by Henry on September 14, 2012 at 1:28

I think Jay is right.  It could be a long time before drilling resumes in the Haynesville.  So the current value of the Haynesville acreage could be very low.  

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Permalink Reply by JHH on September 14, 2012 at 1:48

Thanks... i think you guys are correct.  

also...won't believe it until i see it... but have heard interest building on CV horizontal for liquids. most of the acres HBP.  we'll see.

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Permalink Reply by DrWAVeSport Cd1 on September 15, 2012 at 10:53

This is QEP management's characterization of a typical Haynesville well profile:

"…All [our] wells are choked…They all start out on… roughly a 12/64 choke. And they all exhibit a plateau period, and that plateau period probably averages six months, some a little shorter, some have been plateaued for a year or so. And part of that… depends on exactly where the well was located in our acreage. And when they come off [the plateau], …we let them decline "normally," we're not changing the choke size. And so what you'll see is that the decline, post plateau, is 55% or so on average in the first year."

…There is zero horsepower of compression in the Haynesville. …Contrast that with the Marcellus, where most of the wells …need compression after the first 60 days to 120 days, maybe even sooner, depending on where you are in the play. ...Average flowing pressure on our wells is probably 5,000 or 6,000 pounds. Very few of the wells are even close to line pressure yet. So there's… a lot of reservoir energy to help - and… that's what makes the cash costs so low in this play. And I think people miss that, but it's a very important point.

Now when you move out of the sweet spot, when you move out of the core area, the wells exhibit a completely different behavior. The rates decline and flowing pressures decline very rapidly, and they hit line pressure very early in their lives. But this is the sort of hallmark of the core of the Haynesville play. And it's a relatively limited footprint when you think about it."   (Taken from:  "Haynesville Production Increased In June According To
Latest Data - Part II"...  Seeking Alpha article written by Richard Zeits)

Could it be that CHK and Others are holding on to HS assets for as yet unrevealed "reasons?" 

 

There will be another "chapter" for the HS...IMO

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Permalink Reply by dbob on September 15, 2012 at 14:13

Part of the reason (IMHO) to hold the Haynesville dry gas assets - The price of oil is highly unlikely to double in the next 5 years - the price of natural gas has a reasonable chance of doubling in the same period.  Companies that can weather the "drought" right now and have infrastructure that will be able to rapidly accommodate new drilling will be well positioned in the future.  

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