Sunday, November 6, 2011

Chesapeake's McClendon Comments on the TMS

Not sure how McClendon calls the TMS pricey at $200-250 per acre.
"Or just simply, I think the industry, including us, is running out of places where you could go put together big leasehold positions. And we're not chasing anything in California, and we're not chasing the -- for example, the Tuscaloosa Marine shale and some other things. That would be pretty pricey to get involved in."
Aubrey McClendon, CEO, Chesapeake Energy

Transcript:
http://seekingalpha.com/article/305430-chesapeake-energy-s-ceo-discusses-q3-2011-results-earnings-call-transcript?part=qanda

3 comments:

  1. Kirk,
    I don't see how he can say the area is pricey at $200 - $250 an acre when it ultimately may be worth 20,000+ per acre as in the case of Hilcorp and Marathon. Just does not make sense to make a statement like that unless he feels that they have miss the boat so to speak and not gotten a large lease hold in the area. I don't know of a large block (200,000+ acres) available North of the Shelf in the area that is considered prime TMS property for oil. The only large acreage available is from the MS River East along the shelf all the way into Tangipoha. Then it could be a ruse to throw a curve about their true leasing direction.

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  2. His comment likely means that they missed "phase 1" prices.

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  3. I agree with the phase 1 thing but the more I think about it I think its a ruse. He's saying one think and getting ready to pounce when there is an opening in phase 2.

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