Monday, June 4, 2012

Chesapeake to Sell 337,000 Acres in Liquids Rich Utica Shale (CHK)

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".
From Reuters Africa:
Chesapeake Energy Corp is looking to sell about 337,000 acres of its holdings in Ohio, as it works to raise money to meet an expected cash shortfall, according to a prospectus released by one of its advisers.

The holdings on the block include some in the Utica shale. The prospectus was posted on the website of Meagher Energy Advisors, an energy-focused asset acquisition and divestiture boutique firm that has sold assets for Chesapeake in the past.
This is not good news for long-term shareholders but what with the board shake-up and the Hogshooter discovery well, the stock is up 6% at $16.51.