With the closing of the pipeline and Midstream equity deals for $4.08 Billion I thought I'd go back to a point I made in "Chesapeake to Sell 337,000 Acres in Liquids Rich Utica Shale (CHK)":
Hmmm...They are selling the good stuff. Take a look at the prospectus summary from their agent, Meagher Energy Advisors:
Selling off the Ohio properties because no one would bid up for your "dry" gas prospects.
As you've recently seen in another context, "That's hedge fund behavior"....
Chesapeake Utica-Point Pleasant Trend Acreage
Utica/Point Pleasant Trend Acreage
337,481 Net Acres
80% HBP
Avg. NRI ratio 85%
MAIN TARGET: UTICA SHALE / POINT PLEASANT FORMATION
- Most acreage lies in the wet gas or oil window
- Utica horizontal activity is expanding into these areas
- Thickness 100 to 300 feet (combined Utica/Pt. Pleasant)
- Depth 2,000 to 7,000 feet; dips generally basinward to the east
RATIONALE FOR SELLING
- The Company has altered its plans to develop all of its highly prospective acreage and instead will focus its development on those counties where its land ownership is more concentrated than the land ownership in the counties being offered for sale.
They are bragging about the natural gas liquids/oil potential!
Jeez.
