Chesapeake's significant entry into the Bakken is a huge story, speaks volumes, and continues to pique my interest. The fact that CHK refused to say anything more about the Bakken other than what they mentioned in their prepared statement suggests they are in discussions for further deals in western North Dakota.
A new comment by "Anon 1" at this link speaks volumes.
I think events in North Dakota are bigger than most people comprehend.
More on that later, perhaps, but for now, check out the comment regarding CHK and the writer's general thesis at the link above.
For more on who owns what where in North Dakota, click here.
What is the location of Chesapeake,s 190,000 acreage?
ReplyDeleteI don't know. I think that will become more transparent over the next six months. Right now, it certainly appears to be a very close hold. If I remember correctly, this was non-producing acreage in North Dakota, which means that we won't get a hint through change in which company signs a royalty check or division order.
ReplyDeleteI would think it would be difficult to put together a 250,000 to 300,000 net acreage deal on bits and pieces throughout the Bakken. A sudden announcement of 190,000 acres (and maybe more) suggests one of the private drillers (and a name that we might be familiar with) sold out for a very, very good price.
Do you think that part of this acreage could be located in the Eastern Montana area since numerous acres of temp. spaced areas exist in this area with the lease expiration clock ticking?
ReplyDeleteVery possible (eastern Montana). I don't follow Montana as a rule so if nothing shows up in North Dakota, that's the most likely explanation. But I certainly don't know.
ReplyDeleteGenerally CHK ND leases are new leases from the mineral owner, some maybe purchased from someone who leased them to flip. No production. In some areas there is a lot of open land.
ReplyDeleteLook for a CHK drilling permit soon.
ND lease sale today.
See map for open ND state land.
http://www.land.nd.gov/minerals/minerals.htm
It should be easy to lease a few million acres, mostly privately owned. The hard part is leasing acres that are prospective.
Someone leasing might not want to say much until after this lease sale, if it involves acreage in the play.
Anon 1.
I may be naive, but it seems it would be a challenge to lease a million acres in the North Dakota Bakken at this point.
ReplyDeleteAgain, I may be naive, but at least one oil company bought an entire building in one jurisdiction just for landmen to determine who owned what in the Bakken (in that local area) and then from there had major challenges in obtaining leases, and that was well before folks knew how big the Bakken was really going to be.
I have no experience in this area but acquiring 1,000,000 net acres in the Bakken at this point would seem to be a bit challenging, and hard to believe that no one has shared any rumors of CHK in the area.
But yes, we will all be watching for a CHK permit, unless of course, they turn it over to an "LLC."
The link for the North Dakota lease auction is here:
http://www.land.nd.gov/minerals/minerals.htm
The sale is today; I don't know how soon after today the results will be posted. Stay tuned.
When the lease sale is over, look at the counties east of the Missouri. Emmons. McIntosh. Stutsman. Not the heart of the Bakken.
ReplyDeleteAlso Hettinger. Adams.
It would be easy and cheap to lease a million acres in that region.
Of course, it might be worthless.
Will Ashley be the next boom town?
(Don't bet your last buck on it.)
Anon 1.
As noted earlier, I think it would be difficult to put together a million acres through bits and pieces without anyone taking notice.
ReplyDeleteFor newbies, this is how many acres the state will lease by county (of those in the comment above); some numbers rounded:
Stutsman: 394 -- not a typo -- 394 acres
McIntosh: 1,700 acres
McHenry: 189 acres -- not a typo -- 189 acres
Hettinger: 1,000 acres
Adams: 29,000 acres
Emmons: 1,700 acres
Ward: 3,000 acres
Some of this acreage is outside the Bakken as currently defined/known.
Is that less than 35,000 acres? Well, I guess acquiring all those acres would be on one's way to a million ares. As the Chinese say, "A journey of 1,000 miles begins with the first step."
there have been articles in local dickinson/bowman papers advising Mineral/land owners of informational meetings on leasing of property in Slope, Adams and Hettinger counties for the last 2-3 months.
ReplyDeletei have not atttended any, so i can not share any info. but when you rent a facility, put adds in paper, something must be going on..
You forgot the land that is not owned by the state.
ReplyDeleteAnon 1.
Adams and Hettinger counties, yes, but Stutsman, Emmons, McIntosh just seem to far east.
ReplyDeleteMaybe I will have to eat my words. Remember that article not too long ago that "they" found natural gas in EVERY county but one in North Dakota, and remember, CHK is a natural gas company at heart.
Yes, maybe CHK is looking at 1 million natural gas acres in North Dakota. That's the problem with me: I'm always wearing my oily-colored blinders. I forget about natural gas.
We're talking past each other. I'm not saying that someone can't accumulate 1 million acres in the Bakken, but it won't be easy doing it in bits and pieces without someone noticing. It takes a lot of 40-acre parcels to get to 1 million acres.
ReplyDeleteAnd Bakken acres are no longer very cheap.
I will be surprised if CHK accumulates 300,000 acres in the Bakken without a major acquisition of publicly traded company or private company. I just don't see it in an accumulation of 40-acre tracts, public or private.
However, I do have to admit that CHK might be looking at a huge accumulation of ND acreage east of the river as you suggest but for natural gas. I had forgotten that study that showed natural gas under every county, but one, in North Dakota, a study published just a few months ago.