Replies to This Discussion

Permalink Reply by tc on January 23, 2012 at 3:38

I think investors in these NG stocks are also saying thank you.  Also with all the JVs and partial working interest in the Haynesville, this slow down by Chesapeake will also allow other NG companies to stop drilling.  For example I know Goodrich was going to reluctantly spend $70m on wells in their Bethany Longstreet JV with CHK.  Now they can divert some of that cash to the more oily Eagle Ford and Tuscaloosa shale.

• ▶ Reply

Permalink Reply by Parkdota on January 23, 2012 at 5:28

Very good news...thanks for the post. 

• ▶ Reply

Permalink Reply by GoshDarn on January 23, 2012 at 6:16

It's almost like the CHK board of directors finally woke up from a 2-year drinking binge and realized that they needed to go to rehab.

Or maybe the writing on the wall for the "Cult of Aubrey" is at last numbered.  High-stakes gambles with investor money might seem like a great thrill at a Vegas poker table, but Wall Street ain't so forgivin'.

Yeah, and just like any other fast-money cult/pyramid, the worker bees and insiders might get off on the adrenaline cha-ching -- not even realizing how much destructive harm they're causing others.  Maybe it's a cool place to work, but the crooked shenanigans of "Cult of Aubrey (landman)" speak for themselves.

• ▶ Reply

Permalink Reply by olddog573 on January 23, 2012 at 6:31

I talked to one of the lead guys at a drilling company and he only has four rigs left drilling in the haynesville and those are soon to be moved out to where the rest of his rigs are which are in the oily plays.

• ▶ Reply

Permalink Reply by HMI on January 23, 2012 at 6:37

http://www.chk.com/News/Articles/Pages/1651252.aspx

• ▶ Reply

Permalink Reply by Katie McCullin on January 23, 2012 at 10:29

We just posted a video to our Facebook page to answer some questions we thought might pop up from the announcement this morning. If you have any others, post on the page, and we'll answer them too.

 

http://www.facebook.com/CHKhaynesville?ref=tn_tnmn#!/photo.php?v=30...

• ▶ Reply

Permalink Reply by Spring Branch,mineral owner on January 23, 2012 at 10:44

Very responsive.  Thank you, Katie.

• ▶ Reply

Permalink Reply by JHH on January 23, 2012 at 14:53

I was wondering when this would happen.  Can't say i'm disappointed. Maybe when prices recover there will be some increased M/A activity.  I suspect that's the next step.

• ▶ Reply

Permalink Reply by Tracy on January 27, 2012 at 5:57

anybody know if there is a list of the wells they are planning on shutting down?

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on January 27, 2012 at 6:08

I doubt CHK will be making a list public.  Their press release mentions wells drilled but not completed and completed wells with no pipeline connection as being the main categories for reducing production along with a significant decrease in rigs drilling new wells.  Although we have not brought it up in quite a while, an advantage of shale gas is that production can be adjusted by slowing or ceasing to drill new wells.  The high decline rate of an unconventional reservoir will allow production to drop rather quickly in order to help balance production to demand.  As Jay mentions early in the thread, the HA operators simply have to stop drilling all these alternate unit wells.  Decline rates should re-balance supply in a relatively short period of time.

• ▶ Reply

Permalink Reply by Katie McCullin on January 27, 2012 at 6:15

Tracy - Skip did a great job of explaining. I'll add that in the Haynesville Shale, decisions on reducing production are based upon multiple criteria.  We are not anticipating any complete well shut ins, but we will bring wells online at lower production rates and some wells will be producing through a smaller wellhead orifice that restricts the flow of natural gas. The exact number of potentially affected wells has yet been determined. 

• ▶ Reply

Permalink Reply by J.J.Jones on January 27, 2012 at 6:33

Katie, Speaking of complete well shut ins, the chk well in 26-T16n -R14W was shut in over a year ago. I have been unable to find out if it was a pipeline issue or what the problem was. I believe the well in 27-T16n-R14W was shut in also at the same time. Any information would be appreciated.

                            J.J. Jones

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page