Replies to This Discussion

Permalink Reply by kittycatmama on May 27, 2012 at 9:52

I  heard that BP rumor a couple of weeks ago from my very reliable source.

• ▶ Reply

Permalink Reply by kittycatmama on May 28, 2012 at 4:31

I need to correct my post. I head BHP would make a run at CHK--NOT BP

• ▶ Reply

Permalink Reply by GoshDarn on May 27, 2012 at 10:31

Well, like I've always said:

A . . . B . . . C.

Anyone But CHK.

So, sure.  If BP wants to play nice and clean up Aubrey's mess (ahem) -- then, yeah, depending on how BP does business on the leasing side, I'd certainly prefer to deal with BP than CHK (I guess).

 

Although, if I had my druthers, I'd rather sign a lease with Halcon or BHP Billiton.  But, y'know, there's no way Floyd has enough moolah to steal CHK from Aubrey, and it seems that BHP is now kinda running a bit cautious, so the odds are against BHP coming in to gobble up CHK.

Ergo, if it's BP; it's BP.  I mean, we'd certainly listen to what their landman had to say if it ever came down to a lease offer from BP.  Yep, we're dang lucky we never inked with CHK, that's for darn sure.

• ▶ Reply

Permalink Reply by LP on May 27, 2012 at 10:35

Is it BP as in British Petroleum or is it BHP Billiton? BPH Billiton has been buying interests in NG operators around here.

• ▶ Reply

Permalink Reply by Larry G Smith P.E. on May 27, 2012 at 10:56

NO it is BP, I have done work for this company in the past and they are a great bunch of people. Do not let the Offshore problem bother you, all of my work has been with the Onshore group.  I do not feel we, the royalty owners, will have the problems we are having now.

• ▶ Reply

Permalink Reply by GoshDarn on May 27, 2012 at 11:03

I trust you, Mr. Smith.  You know your stuff per your many years and top credentials in P.E.  Your word is good enough for me.

Like you say, I'm sure BP will be shoulders above CHK.

• ▶ Reply

Permalink Reply by Krkyoldhag on May 27, 2012 at 15:02

The rumor I heard was out of Tulsa.. something is going on..we will know in a few weeks..

Lets hope CHK remains a viable company until changes are made.  Can you name one royalty owner that is happy with CHK?  NFR, BP, any of the others with leases from CHK and others can compare and I can tell you there is strange stuff going on on their statements with CHK...

Its not public opinion turning against them its their own royalty owners.

 

I lean toward the likely possibility of an Equity fund buy in. 

• ▶ Reply

Permalink Reply by Steve P on May 27, 2012 at 20:23

Well, BP has a number of HBP sections in DeSoto (old 1/8 leases) and permitted a number of HS wells but never drilled any of them.  In hindsight, I suppose it is a good thing that they didn't drill, but I doubt that BP will drill any of them until they are forced to.  I've got small holdings in several of those sections, and while I don't want to see my prime NG production sold below $3, I'd also like to think that I will see some production before I'm gone. 

Frankly, notwithstanding the comments of LGS in this thread, I've never heard much of anything good about BP's operations.  Presumably they have learned some lessons from their recent discomfort in the Gulf (and before Congress and the courts), so maybe they will clean up their act (pun intended).

CHK is ripe for the picking if a buyer who has the cash can stomach all of the leverage CHK has applied towards their assets.

• ▶ Reply