Replies to This Discussion

Permalink Reply by Linda Blunt on February 23, 2010 at 10:35

As a stock holder, the loss of $12.5 million is quiet unsettling.

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Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2010 at 10:44

Linda. It's small change to CHK and an understandable business decision. They have a lot of undrilled leases in the southern reaches of the play. And they are still leasing. I predicted last summer that CHK would redirect their development capital to the southern extension of the Play. This is also somewhat of an object lesson in that members often assume, and sometimes state with conviction, that if company X is taking leases in a particular area they know something definitive regarding its prospective nature. It seems unsettling to many but it is an accepted risk in the industry. Even the companies perceived as highly capable make mistakes. The good ones cut their losses and move on. This opens these tracts for others to lease and drill.

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Permalink Reply by FXEF on February 23, 2010 at 16:35

Just think of $12.5 million as two dry holes.

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Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2010 at 16:44

FXEF, don't you know, there are no dry holes in the Haynesville Shale? Just some holes are better than others. The shale in the northern tier of the Play will get drilled eventually when the price of nat gas improves to the point that those wells are economic.

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Permalink Reply by om28v on February 23, 2010 at 10:41

I guess thats the difference between $12.00 and $5.00 natural gas, and a unsteady economy. $12,500,000 poof! Seems like we have seen Aubrey take some crazy hits in the past, I don't know that i would want to hold shares in CHK.

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Permalink Reply by Checkmateking on February 23, 2010 at 11:15

This has happened in every frenzied leasing in every o/g play for over a hundred years, nothing to get excited about, I seem to recall huge portions of the Fayetteville Shale leasing turned out to be uneconomical.

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Permalink Reply by Bobi Carr ("parker") on February 23, 2010 at 11:29

So far I see

18-12
18-13
19-12
19-13

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Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2010 at 11:38

parker. The bulk of the Caddo leases are in the area of Cross Lake. However there are some in 19N - 14 & 13W and 20N - 13W.

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Permalink Reply by Bobi Carr ("parker") on February 23, 2010 at 12:02

Here is a copy of one:

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Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2010 at 14:27

Gives me a crick in my neck trying to read it. Please rotate.

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Permalink Reply by Bobi Carr ("parker") on February 23, 2010 at 14:58

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Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2010 at 15:43

Dat's mo betta. Tank ya. LOL!

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