XOM Selling Natural Gas Assets in Niobrara; Chesapeake Selling Utica Assets

Link here.

I don't know if this is all of Chesapeake's assets in the Utica or just a percentage.

Also re: XOM and CHK in Wyoming/Colorado --

Recently, the second largest natural gas producer in the U.S., after ExxonMobil Corporation, also announced plans to divest approximately 504,000 net acres of land that includes leases for oil and gas production in the Denver-Julesberg (DJ) Basin of northern Colorado and southern Wyoming. The properties set for sale also comprise 29 operated and producing wells in the southern portion of the DJ Basin as well as Chesapeake's share in 24 non-operated wells. Some of the properties are also situated in the Niobrara shale.

This sale of half a million acres of its holdings in the Rocky Mountains covers Chesapeake's entire holdings in northeastern Colorado. The divestiture will enable it to focus more on the development of its 500,000 net acre Niobrara leasehold in the Powder River Basin located in east central Wyoming.

From CHK's 1Q12 earnings call when CHK said it would focus on its #1 positions:

We've now established #1 position in the Utica, Mississippi Lime, Granite Wash, Cleveland, Tonkawa, Powder River in the Niobrara, Marcellus, Haynesville and Bossier plays. In addition, we have established #2 positions in the Eagle Ford and the Barnett. No one else in the industry has assembled anything close to this scale and quality of an asset portfolio. In short, we've built a very strong foundation of 11 #1 and #2 positions in the nation's best plays.

The Utica was mentioned as a #1 position, which suggested it was not up for sale. The Bakken was not mentioned in that group of 11 plays.

Chesapeake and the Williston Basin -- More Than Just the Bakken

There's been a lot of interest lately with regard to Chesapeake coming into North Dakota with a bigger footprint.

I was skeptical how fast Chesapeake could accrue acreage in North Dakota at this late date without attracting attention or buying out a large player already in the Williston Basin. Based on some very perceptive comments from "anonymous" and more specifically "anon 1" I realize I was missing the point.

Three things to remember:

• Chesapeake has historically been focused on natural gas (yes, I know, they are shifting their focus, also, like many other natural gas companies
• The Williston Basin is much more than just the Bakken (click on this site to see a general map)
• The recent story that shallow natural gas has been found under every county in North Dakota (except one)

This is very, very exciting. As "anon 1" said, wouldn't it be interesting if CHK took a large position east of the river?

By the way, the results of yesterday's North Dakota state lease auction are now posted.