(Flashback) BREAKING NEWS: Notes from Chesapeake's Conference Call
Chesapeake Conference Call July 2, 2008 9:00am
Chairman/CEO Aubrey McClendon (Summarized)
• Win-win partnerships between Chesapeake and PXP - Great news for Chesapeake shareholders
• Haynesville 4th largest gas field in the world
• Chesapeake has invested $2.5B in Haynesville
• Play just underway, data suggest 250TCS
• Barnett had 50TCS, which is only 20% of Haynesville –
• Our country should realize how blessed we are as a nation, especially during this time of record high gas prices – can be very helpful in converting to hybrids
• We are so confident because 3.5 M acres defined as core area
• These wells are in a class of their own – calling them “triple X monsters” – likely to get better over time – 8th well, 2 days ago brought on the best so far: 4.5-8.5 BCSE
- claimed that the reason for withholding info was to prevent other companies from receiving a blueprint to their technical practices
- 4 corners work from all the companies that have outlined the shale from their drilling.
- Haynesville Shale will move quickly.
- PXP retains the ability to sell their interest in the HS
- Do not forsee selling hshale--wanted to buy more
- Chesapeake retains first right of refusal
- Ches - 4,000 landmen in the HShale - 1,000 in Barnett, scouring the field.
- Dollars per acre was set by Ches.....$30,000 per acre....paid that price because Ches is going to agressively work HShale to increase the rate of return, deploying PXP capital smartly was the goal.
- Mix of Shale and Sands? Looking for 100% shale...looking for great black shale with the right porosity and organic composition. When you hear the flow rates their will be skepticism but it goes back to the high rates of pressure. The consistency and simplicity is the reason for the dynamic production.
- Flow rates - what are the infrastructure restraints? On top of the game large structure that handles other plays so will be moving fast. We are east so we are closer to the markets...so better pricing. Do the math and HShale could do [better? He kinda trailed off here] because we are closer to the eastern markets.
- Great opportunity for the US to retrofit gas stations and use natural gas instead of foriegn oil.
- Potentially liberating event.
- Here in the HShale we may have 10 years of production.
- 60 rigs operating by 2010
- Play could not be in a better spot.
- Regulatory structure that is favorable
- Great pipeline structure...past many bottlenecks will help this happen much more quickly. Do have to extend supply lines...this helps drive down costs.
- Working through Twin Cities in Shreveport..has put togther an impressive organization..has a network set up..tough sledding to go door to door to buy leases.
• PXP partner – deep LA roots helpful as they develop Haynesville in the decades to come – if you snooze, you lose and Ches is not snoozing - Haynesville will develop similarly to Barnett but also differently – it will be easier than Barnett in some ways
Tags: Chesapeake, Haynesville, Shale
Views: 659
Replies to This Discussion
-
Permalink Reply by Kenny on
-
The great debates are what make us great---Saudi has nothing to do with our economy, as long as we have to come here, they don't mind a bit. When the far left wake up and realize that drilling in our own country would solve a lot of the problem, I wouldn't have to come over here, I could be home with my family. But no---to many cry babies want to worry about oil spills, then cry when they have to fill up their tanks. I'm not suprised at all of the stradegy people are taking, hell I'm taking it right along with ya. I'm never satified either and want all I can get, but I'm not gonna miss the boat either. If the big O&G can buy most, don't you think they can buy the verification. It is possible, there are crooks around every corner you turn, all I'm saying is BE CAREFUL!!!
-
Permalink Reply by Snake Stewart on
-
Hello Kenny , Saudi has a great deal to do with our economy.Every OPEC clown in the harem that refuses to increase production has a big say right now in our economy. I agree wholeheartedly about the extremes to the left. As long as it is still profitable, O & G's will still market their spoils. Thats what makes the world go round.
When you look at the Socialist type movement that is swimming through the sewers underneath the hallowed halls of our once great government, it makes me wonder how long we are going to be able to keep these mineral rights anyway. I guess that is one reason why I am for the higher royalty payment.Who knows how long this will really last. Please don't say it can't happen.Who woulda' thought 10 years ago that the Pledge of Allegiance could be considered as inflamatory ? Or that the Ten Commandments somehow were a real bad idea to be seen hanging in the halls of our government buildings. What , were they afraid someone may start living by them or something ?
As long as I have a shot, I have to try to take it ! I am not trying to be judgmental but if you were still unsigned, in my opinion you may would be helping me raise the banner for bigger bonuses. Just a thought Kenny ole' boy.Have a great one!
P.S. Be careful over there. I heard those cats didn't like people with actual freedoms.
-
-
Very good snake, I've enjoyed our debates, and you have a very good point. And your right, these guys over here would just soon feed me to the lions than look at me. Hope your successful and help others be as successful, keep up the good fight!!!
-
Permalink Reply by Keith Mauck (Site Publisher) on
-
Remember this :)
-
Permalink Reply by Skip Peel - Mineral Consultant on -
Yep, I do. And I think it would be very instructive to periodically highlight key discussion threads from the early years of the play for current members to read - and learn.
-
Permalink Reply by Dion Warr, CPL on
-
Keith:
Uh, yeah. Greedy companies keeping people in the dark. Greedy companies not paying enough. Greedy companies making too much money, should pay "windfall profits" taxes. Greedy companies not offering enough royalty. Greedy companies drilling minimal amount of wells to hold leases. Greedy companies not wanting to make a deal and drill wells on my place.
Then... Greedy companies said too much, drilled too much. Greedy companies took tax breaks to drill too many wells. Greedy companies drove the prices into the toilet. Greedy companies not paying enough royalty because of low prices. Greedy companies "taking refuge" in bankruptcy. Greedy companies took everyone else's money to pay too much for leases. Greedy companies screwing up 401(k)'s. No one wants to lease my place.
Anything else went on here? Maybe? "Irrational exuberance"?
Let's do word association. "Boom..."?
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
To read and learn that much of what was claimed as the gospel in the beginning was wrong. And often detrimental to the decision making process of far too many members who believed what they read. As I said back then and will repeat now - negotiating and executing a mineral lease is not a morality play, it is a business transaction.
- ‹ Previous
- 1
- …
- 5
- 6
- 7
- Next ›
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
-
Fayetteville Shale
149 members
-
North Caddo Parish
358 members
-
Central Texas Gas
63 members
-
Cass County, TX
119 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
