Replies to This Discussion

Permalink Reply by jffree1 on December 8, 2009 at 13:49

Who's making offers? That's the first I've heard of 2500.00 this year.

Permalink Reply by om28v on December 8, 2009 at 14:54

Hope this is correct, sure beats $750.00 per.. Sabine Parish has confirmed bonus offers of 5k per.. Who would take a low offer after the big well came in right next door? I feel 5K may be the money soon as 2010 budgets kick in.

Permalink Reply by om28v on December 9, 2009 at 6:26

The Devon well is 6 miles West of the Sabine County line as the crow flies. In many formations that is a very long ways away, but in these multiple formations it is not. We heard last that $750 was a very good offer, and a week later it's up 25% to $1000? Nice move in a week. Gas has gone to $5 and Congress is looking at making power plants convert to nat gas ( perhaps the biggest news of all to us ). 2010 budgets are about to come in. Greed? Those minerals are 100% ours right now, until we agree to a deal. I'm banking on O&G greed. It has happened in the past, and will happen again.

Permalink Reply by om28v on December 9, 2009 at 8:01

Rick, I have not been giving out any advice to anyone here, but I will avise shalers to be informed and persue as much due diligence as they can. Last year we were told this ( or CHK shareholders were ) by A.M. himself. I know this was a year ago, but I'm just saying...
Aug. 01. 2008 / 9:00AM, CHK - Q2 2008 Chesapeake Energy Corporation Earnings Conference Call

Aubrey McClendon - Chesapeake Energy Corporation - CEO
Well Suvas, a couple different thoughts there. The first is that the amounts of money involved in grabbing acreage in places like the Barnett or Haynesville are absolutely staggering. To go out and buy 10,000 acres in the Haynesville today, if you could do it, would cost you over $300 million. There are just not many companies at the end of the day that can write that check, then also have the technical resources to go out and drill the wells. Having said that, to spend $30,000 an acre as Plains did for acreage from us is kind of chump change when it comes down finding costs. If you think about that 30,000 an acre on 80 acres is $2.4 million, and you're finding 6.5 Bcf in that 80 acres and after royalties, that number gets down to be about $0.50 an Mcf, so is it rational for the industry to pay $0.50 for the right to go develop gas reserves at $1.33 in the ground? Absolutely

Permalink Reply by ken hatcher on December 9, 2009 at 8:59

If 5-k is being greedy, 750 p/a is absurd!!

Permalink Reply by om28v on December 9, 2009 at 10:42

I can't explain Rick. Aubrey Mcclendon seems to say or do what is in his best interest at the time. This is him justifying selling leases for so much money, there is probably stuff out there where he is doing the opposite. Even if we don't agree on a lot of things here, I do like the fact that you have the Sabine board getting active again. We leased last year some of our holdings for 5k or more and it just seems crazy to take less now when things look so much more promising. Time will tell, the play is still very young and we are all lucky this is happening in the first place, even if this is what we have hoped for for a great many years.