Chesapeake is Assigning Portions of Interest

I got a letter from Chesapeake today stating they are assigning a portion of their interest in our lease with Jamestown Resources.  They just starting drilling the well last week.  What is the purpose of assigning?  They say all checks and communication will still be through Chesapeake.  Will this affect us in any other way?  Forgive my naivity, I am still a newbie.

Tags: Assignment, Interest, Portions, of

Views: 2239

▶ Reply to This

Replies to This Discussion


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 3, 2011 at 13:41
Assigned to who?  There are many reasons for companies to assign lease rights, in part or in whole.  It is not unusual.
Permalink Reply by azrealtor on October 3, 2011 at 13:44
Also, who is Jamestown Resources?  I've never heard of them and I'm wondering....are they investors?  What role do they play in natural gas?  Are they an affiliate of Chesapeake?  Any input on this would be appreciated!  Thanks in advance.

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 3, 2011 at 14:23

The bulk of leases are not taken in the name of the operator.  Operators regularly use one or more "land companies" to acquire leases.  az, there are a whole lot more that you've never heard of and more come along every day.  It's the nature of the business.  Without more detail, it's hard to say but it's likely they took the leases for Chesapeake.

 

Name Type City Status
JAMESTOWN RESOURCES, L.L.C. Limited Liability Company (Non-Louisiana) OKLAHOMA CITY Active

Business: JAMESTOWN RESOURCES, L.L.C.
Charter Number: 40407134 Q
Registration Date: 1/21/2011
Domicile Address
  6100 N. WESTERN AVE.
  OKLAHOMA CITY, OK 73118
Mailing Address
  6100 N. WESTERN AVE.
  OKLAHOMA CITY, OK 73118
Principal Business Office
  6100 N. WESTERN AVE.
  OKLAHOMA CITY, OK 73118
Registered Office in Louisiana
  320 SOMERULOS STREET
  BATON ROUGE, LA 70802
Principal Business Establishment in Louisiana
  320 SOMERULOS STREET
  BATON ROUGE, LA 70802
Status
Status: Active
Annual Report Status: In Good Standing
Qualified: 1/21/2011
Last Report Filed: N/A
Type: Limited Liability Company (Non-Louisiana)

Registered Agent(s)
Agent: CORPORATION SERVICE COMPANY
Address 1: 320 SOMERULOS ST.
City, State, Zip: BATON ROUGE, LA 70802-6129
Appointment Date: 1/21/2011

Permalink Reply by azrealtor on October 3, 2011 at 14:29
So, regardless of who this company is, why would Chesapeake assign a portion of their lease to another company?

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 3, 2011 at 14:42
Joint venture agreements and drilling carries.  There are many such agreements.  Not just with Chesapeake.  It's  a way to monetize leasehold and get partners to share in the cost of developing leases and drilling wells.

Oil & Gas ProPermalink Reply by Les Bamburg on October 4, 2011 at 2:42
AZR, is your lease located in the Haynesville Shale or one of the other plays?

Oil & Gas ProPermalink Reply by The_Baron on October 4, 2011 at 3:33
Are they just assigning the shallower depths?
Permalink Reply by a on October 4, 2011 at 3:58
Jamestown Resources is another Audrey McClendon company.  Chesapeake has assigned Jamestown 2.5% working interests in several wells and associated leases.
Permalink Reply by azrealtor on October 4, 2011 at 4:17
We are in 28-12N-15W.  It is a Haynesville well.  We leased only the depths below the existing wells to Chesapeake.

Oil & Gas ProPermalink Reply by Les Bamburg on October 4, 2011 at 6:09
I wonder if Chesapeake is planning to set up some Volumetric Production Payments (VPP's).
Permalink Reply by DrWAVeSport Cd1 on October 4, 2011 at 7:03

Les B,

Probably, Chesapeake is up to...what 9 or 10 VPPs now?  I thought most VPPs are done with "financial" instituations?

Q1 2011, Conference Call:  Domenic "Nick" Dell'Osso (CHK):

"...Lately. we have completed and expect to shortly close our ninth VPP for approximately $845 million on 180 bcfe of reserves or $4.69 per Mcfe.  The reserves in the package are approximately 80% gas, 20% liquids, and this brings our total VPP sales over the course of 9 transactions to 1.2 Tcfe at a total sales value of $5.5 BILLION for an average per Mcfe sales price of approximately $4.60...

DrWAVeSport Cd1 10/4/2011


landownerPermalink Reply by Henry on October 4, 2011 at 13:52

Les,

Can you help me out?  What is a Volumetric Production Payment?

RSS

© 2026   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service