Tuesday, January 5, 2010

Chesapeake Might Sell Excess Haynesville Acreage

Chesapeake Energy confirmed that it, along with partner Plains Exploration, is looking to sell approximately 100,000 acres in the Haynesville Shale.  A proposed sale has been whispered about for the past week and likely would include non-core acreage in Harrison and Panola Counties, Texas and the northern parts of Bossier and Caddo Parishes, Louisiana.

Chesapeake was very aggressive in picking up acreage in the Great Haynesville Land Rush, seemingly with a "shoot first, ask question later" approach.  Now that the company has done exploratory drilling, it has identified the core areas where it wants to concentrate.  By selling these extra properties, it will release land that it probably couldn't drill before the leases expire.  It's likely a win-win because Chesapeake can monetize unused leases (albeit at a likely lower price) and the property owners can have a new operator that will place greater attention on drilling their leases.  While these areas may not be "core," at the right price somebody will be interested in them.

No comments: