Last week Chesapeake transferred 90 percent ownership of their 9,000 Utica Shale leases in Columbiana County, Ohio to their French partner Total in return for $2.03 billion. Back in December Chesapeake did an initial deal with Total for a 25 percent ownership stake in Chesapeake’s Ohio Utica Shale leases for 10 Ohio counties. This latest deal does not grant Total 90 percent in all 10 counties, so the question is, why Columbiana in particular? In two words: headache relief.
Chesapeake Energy is still battling a tidal wave of negative press in a bid to prop up the stock price and prevent a “significant liquidity event” (i.e., being forced to sell the company). Their latest move is to reduce reduce the pay of board members and take away their private airplane rights. Still, board members get $350K per year, even after the 20 percent reduction.
From the Chesapeake press release:
Tired of New York municipalities passing ill-advised bans on fracking, and hoping to increase the chances that landowners will be “first in line” for permits when they are finally issued, a group of landowners in New York have launched a campaign to get municipalities to pass a non-binding resolution that they will not enact a ban on fracking—and it’s working.
The Muskingum Watershed Conservancy District has just signed a deal with Sierra Buckeye of Houston to allow Utica Shale drilling on 185 acres of District-controlled land—and it got some VERY favorable terms for the deal.
Some high paying jobs are on the way to Marshall County, WV courtesy of a new natural gas processing plant being built by Dominion and opening in December. What’s good paying? How does $30 per hour sound?
First announced back in early April, Penn Virginia Resource Partners (PVR) deal to buy Chief Gathering for $1 billion has officially closed on Friday. The deal creates a very large presence in the Marcellus Shale midstream space for PVR.
From the PVR press release:
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading: