Chesapeake Energy plans big selloff in Colorado, Wyoming
Posted: May 31, 2012 Filed under: Uncategorized | Tags: Chesapeake, Colorado, Oil & Gas Leave a commentBids for the acreage are due June 28
Mark Harden at the Denver Business Journal reports Chesapeake Energy Corp. is selling more than half a million acres of its oil and gas holdings in the DJ Basin of Colorado and Wyoming, including all of its remaining holdings in northeastern Colorado.
“The 503,863 net acres up for sale include parcels in the Niobrara shale of northern Colorado. Many in the energy industry consider the Niobrara to be a promising play, but Chesapeake’s CEO and co-founder, Aubrey McClendon, said in February that its drilling results so far in the Niobrara as well as North Dakota’s Bakken area had been ‘disappointing.’ Chesapeake confirmed the sale offer to the Denver Business Journal on Friday. Analyst estimates of how much the sale could fetch range from $1 billion to $2 billion.
“Oklahoma City-based Chesapeake (NYSE: CHK) — the nation’s second-largest natural gas producer, after Exxon Mobil — is trying to raise as much as $11.5 billion in cash to pay down debt and fund operations in areas it considers more promising; it borrowed $4 billion in early May.”
Chesapeake and McClendon have come under fire recently over his financial dealings. Reuters reported in April that McClendon used his own stake in company wells as collateral for $1.1 billion in personal loans. It later emerged that McClendon was involved in a hedge fund that traded in natural gas.
For more on Chesapeake from the Daily Energy Dump scroll through the archives here.
Recoverable oil in west ‘about equal to entire world’s proven oil reserves’
Posted: May 14, 2012 Filed under: Uncategorized | Tags: Colorado, hydraulic fracturing, Policy, shale, Utah, Wyoming 1 CommentRecoverable oil in west ‘about equal to entire world’s proven oil reserves’
According to Terence P. Jeffrey at CNSNews, “[t]he Green River Formation, a largely vacant area of mostly federal land that covers the territory where Colorado, Utah and Wyoming come together, contains about as much recoverable oil as all the rest the world’s proven reserves combined, an auditor from the Government Accountability Office told Congress on Thursday.”
Via Jazz Shaw at HotAir, who, in highlighting the article, says, “If we move forward on this aggressively, the industry can safely access these resources which would significantly strengthen our hand on the international stage. But with the wrong approach, Washington could hog tie energy developers with excessive, expensive regulations or shut the entire process down by failing to issue permits to develop resources on these federal lands.
“The public disclosure of these reserves is good news, but it’s only the beginning. And while I feel some trepidation in saying it, I’m afraid the ball is in Barack Obama’s court.”
Daily Energy Dump 