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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (146215)	3/4/2011 5:31:57 PM
From: MIRU	Respond to of 206085

JS, That was a perceptive and comprehensive post. If we are going to see a "porpoising" economy (and oil price) there will be some great opportunities. Who knows? Maybe we will get a chance to buy Chesapeake and Brigham at $2 for the third, forth, fifth time.

To: Jacob Snyder who wrote (146215)	3/11/2011 12:55:39 AM
From: Jacob Snyder	Read Replies (1) \| Respond to of 206085

Chesapeake (CHK): ...second largest producer of natural gas and a Top 20 producer of oil and natural gas liquids in the US. It owns interests in approximately 45,100 producing natural gas and oil wells that are currently producing approximately 2.8 Bcfe per day, 88% of which is natural gas. Its strategy is focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S. seekingalpha.com The last 5 years have given the company vast holdings of land and resources, a large debt load, as well as technological expertise in the US Shale energy field. The company is no longer exploring the US for the next big find, but now has switched its focus into getting those resources out of the ground. seekingalpha.com The debt used to finance this land grab, questions as to how Chesapeake will come up with the billions and billions of dollars to develop the assets, and falling natural gas prices have kept the share price in check over the last two years. seekingalpha.com This company has been on a tear, off-loading non-core properties and entering new ventures. Two weeks ago CHK said that it would sell 487,000 net acres of leasehold and producing natural gas properties in the Fayetteville Shale play in central Arkansas to BHP Billiton Petroleum (BHP) for $4.75 billion in cash. This includes existing net production of approximately 415 MMcfe of natural gas equivalent per day and midstream assets with approximately 420 miles of pipeline. The company began 2010 with estimated proved reserves of 14.254 tcfe and ended the Q3 2010 with 16.223 Tcfe, an increase of 1.969 Tcfe, or 14%. It is also the second largest producer of natural gas and a Top 20 producer of oil and natural gas liquids in the US. It owns interests in approximately 45,100 producing natural gas and oil wells that are currently producing approximately 2.8 Bcfe per day, 88% of which is natural gas. Its strategy is focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S., primarily in its "Big 6" shale plays: the Barnett Shale in the Fort Worth Basin of north-central Texas, the Haynesville and Bossier Shales in the Arkansas-Louisiana-Texas area of northwestern Louisiana and East Texas, the Fayetteville Shale in the Arkoma Basin of central Arkansas, the Marcellus Shale in the northern Appalachian Basin of West Virginia, Pennsylvania and New York and the Eagle Ford Shale in South Texas. The company also has substantial operations in the liquids-rich plays of the Granite Wash in western Oklahoma and the Texas Panhandle regions, the Niobrara Shale and Frontier Sand plays of the Powder River and DJ Basins of Wyoming and Colorado, as well as various other liquids-rich plays, both conventional and unconventional, in the Mid-continent, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast and Arkansas-Louisiana-Texas regions of the U.S. We have vertically integrated our operations and own substantial midstream, compression, drilling and oilfield service assets. The company announced earlier this year that it is extending our strategy to apply the horizontal drilling expertise gained from its natural gas plays to unconventional oil reservoirs. The goal is to reach a balanced mix of natural gas and liquids revenue as quickly as possible through organic drilling, rather than through acquisitions. This transition is already apparent in the mix of natural gas and oil and natural gas liquids wells it drills. In 2010, the company expects that ~31% of drilling and completion capital expenditures will be allocated to liquids-rich plays, compared to 10% in 2009, and it is projecting that these expenditures will reach 65% in 2012. The company now owns approximately 3.1 million net leasehold acres in unconventional liquids-rich plays. seekingalpha.com