tag:blogger.com,1999:blog-1149283829854298377.post8046833333043209291..comments2024-03-28T15:12:38.709-05:00Comments on The Million Dollar Way (The Bakken Oil Blog): Poll: What Is Chesapeake's Acreage in North Dakota Worth?Bruce Oksolhttp://www.blogger.com/profile/10952652803684625738noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1149283829854298377.post-82239719130084004012013-03-04T19:37:10.919-06:002013-03-04T19:37:10.919-06:00400,000 acres x $500/acre = $200 million. Won'...400,000 acres x $500/acre = $200 million. Won't come close to what Chesapeake needs. Maybe that's the reason we haven't heard anything else since the original story.Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-33145558055945690572013-03-04T19:30:19.003-06:002013-03-04T19:30:19.003-06:00I think the going rate for most lease holders in t...I think the going rate for most lease holders in that area was about $300 per acre. Add in about $200 more for administration cost and you have about $500 per acre, max. And I agree with everyone above, probably much less, unless well logs indicate something exceptional. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-66652367389048162362013-03-04T18:27:28.059-06:002013-03-04T18:27:28.059-06:00Every day with no reports from Chesapeake makes me...Every day with no reports from Chesapeake makes me less and less a "believer" of the story -- that it has sold its Bakken acreage. If so, you may be correct: asking price too high.Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-11097145272652014852013-03-04T16:18:06.669-06:002013-03-04T16:18:06.669-06:00Should have an "<$1000" option. I can...Should have an "<$1000" option. I can't imagine that on average those CHK acres will bring even that. Chesapeake was late to the game in the Bakken so the bulk of their acres are well south of any existing production. The few CHK exploratory wells drilled essentially devalued most of their lease block (rather than derisked). <br /><br />Elsewhere CHK used this strategy successfully; 1. Tying up big blocks of mineral leases in unproven areas for very low rates. 2. After which they'd sell off a portion (half or less) in joint ventures to recover their entire initial costs. In Wyoming's Powder River basin this worked well, though in North Dakota it has left them with tens of thousands of acres nobody wants.<br /><br />Whiting may want the most northern end of Chesapeake's holdings, though CHK may want them to 'buy it all' in order to get that piece. In which case it makes no sense for Whiting (or anyone) to pay even a $1000 per acre on average when 4/5th of what they're buying has virtually no value. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-38170031164789755582013-03-04T11:48:33.495-06:002013-03-04T11:48:33.495-06:00You probably recall the stories where they ceased ...You probably recall the stories where they ceased payments on some of the leases, overall very un-professional. Perhaps a small portion of the acreage is useable without a map it would be hard to tel.Bakken Ownerhttps://www.blogger.com/profile/09529106861001326125noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-88558469020441482072013-03-04T08:59:18.020-06:002013-03-04T08:59:18.020-06:00Yes, that was the original source for my link. Lat...Yes, that was the original source for my link. Late Friday night.<br /><br />Interestingly nothing else has come out since then. Makes me wonder about the veracity of the "story."Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-31189717404516424232013-03-04T08:51:51.636-06:002013-03-04T08:51:51.636-06:00http://blog.newsok.com/energy/2013/03/01/reports-c...http://blog.newsok.com/energy/2013/03/01/reports-chesapeake-selling-bakken-shale-acreage/<br /><br />This supports the thesis somewhat. Bakken Ownerhttps://www.blogger.com/profile/09529106861001326125noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-14754075210833883492013-03-03T21:18:40.922-06:002013-03-03T21:18:40.922-06:00Other, is the best option it is worth nothing unle...Other, is the best option it is worth nothing unless the three forks proves viable. really moronic purchase, limited due diligence, I'm not an expert but I have not seen any data suggesting this would be a good place to go. When risk is high (wildcat) then lease should be low. 100 dollars anyone! Same thing happened to some of Oxy's acreage just not thermally mature.Bakken Ownerhttps://www.blogger.com/profile/09529106861001326125noreply@blogger.com