All leasing comes to halt

talk to landmen working for HK CHK XTO DVN All lease active is on hold for unknow period of time. All draft have been stopped on present deals, will not be paid and these lease will terminate at end of draft time period. They have cut production money. However the good news is they will continue to drill the leases they have which is enough land to drill for the next 20 years

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Permalink Reply by max73 on October 9, 2008 at 2:34
Don't know where you are getting your info adubu ........... I just talked with a CHK landman - In-house in OKC (not a broker) and this is not the story I'm getting - lease acquisitions have not been suspended
Permalink Reply by adubu on October 9, 2008 at 2:53
let me know with facts if anyone signs and get paid for any lease after today
Permalink Reply by ETOilman on October 9, 2008 at 3:19
Word on the street is that CHK layed off 700-1000 contract landmen this week. Devon has also let go a large amount of "lease buyers" as well. It is happening. Best of luck to all of you mineral owners.
Permalink Reply by ALongview on October 9, 2008 at 3:39
We leased 135 acres in July in Sabine County and were paid by Devon. We then leased an adjacent 40 acres in September to Devon yet haven't been paid yet because the draft is not due yet. Are you saying that this second lease is not going to be paid or because it is connected to other leased acreage it is safe. Any opinions would be appreciated.
Permalink Reply by Grice on October 9, 2008 at 3:56
With companies selling off assets in other regions, it would seem appropriate to redeploy the landmen working those assets. The term "layoff" indicates that the landmen are no longer employed. However, that term may not be valid, since they (landmen) will continue to focus on the areas in which they have in the past. They simply will be acquiring leaseholds for a different company.

Here is a quote from John Richels; "Devon, however, would most likely continue to buy land in areas where it already has a dominant position."

Based upon that statement, I do not think Devon is in a financial drain.
Permalink Reply by ALongview on October 9, 2008 at 3:59
Thank you Grice!
Permalink Reply by Gone Fishin on October 9, 2008 at 4:15
my wifes uncle leased for 5000/ac along with his neighbors to devon inbetween timpson and tenaha. this was a couple of weeks ago.
Permalink Reply by adubu on October 9, 2008 at 4:47
this stoppage started only this week
Permalink Reply by ALongview on October 9, 2008 at 4:52
So you are saying no more leasing from now til an unknown future date? This I understand but the cancelling of drafts that are on leases that are already signed seems like a flimsy business model as the market will eventually come back and the landowners won't easily forget. Your thoughts?
Permalink Reply by Grice on October 9, 2008 at 4:56
What "stoppage"? The only things we hear are speculations, rumors, and personal opinions. I have spent most of the morning searching through available resources, and find no factual indication of a "stoppage". if you can guide me to where I may find solid proof that lease activities (for this area) has come to a standstill, I would appreciate it. Thanks.
Permalink Reply by Bill G on October 9, 2008 at 5:14
The Proof is in the Pudding

HK
Last Trade: 12.84
Trade Time: 11:52AM ET
Change: 0.20 (1.58%)
Prev Close: 12.64
Open: 13.08
Bid: N/A
Ask: N/A
1y Target Est: 46.36
Day's Range: 12.03 - 13.68
52wk Range: 9.85 - 54.49
Volume: 3,910,615
Avg Vol (3m): 10,183,500
Market Cap: 2.85B 3 months ago it was over 5 billion
P/E (ttm): N/A
EPS (ttm): -0.67
Div & Yield: N/A (N/A)


CHESAPEAKE ENERGY CP(NYSE: CHK)
NEW Real-time: 21.53 -0.88 (-3.93%) 12:08pm EThelp
Last Trade: 21.54
Trade Time: 11:54AM ET
Change: 0.87 (3.88%)
Prev Close: 22.41
Open: 23.57
Bid: N/A
Ask: N/A
1y Target Est: 70.24
Day's Range: 21.26 - 24.08
52wk Range: 20.50 - 74.00
Volume: 18,867,191
Avg Vol (3m): 22,502,400
Market Cap: 12.48B 3 months ago it was over 30 Billion
P/E (ttm): N/A
EPS (ttm): -2.67
Div & Yield: 0.30 (1.30%)

Not to burst your bubble but america is running out of money...THEY ARE NOT GOING TO GIVE IT TO THESE GUYS TO BET ON SOMETHING THAT IS NOT A GUARANTEE HARD ASSET....Common since tells you they are putting the breaks on this deal! Not being pessimistic just being realistic!
Permalink Reply by adubu on October 9, 2008 at 5:20
Bill Grice---call any landman you know. Go down to any court house and talk to any landmen if you can find one

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