Chesapeake Energy Seeks to Sell Large Land Position in the DJ Basin

Chesapeake Energy Acreage For Sale - Image Credit - Meagher Energy - Click to Enlarge

Chesapeake Energy has put up 503,863 Net Acres of land for sale in the DJ basin. The acreage for sale traverses much of the Rocky Mountain Front Range from Platte and Goshen Counties, Wyoming on the north end to Douglas and Elbert Counties in Colorado on the south end of the basin.

The available acreage has primary targets in the Niobrara formation with secondary targets in the Codell Fm., Greenhorn/Graneros Fm., Dakota Fm. D and J Sands.

The acreage is being sold by Meagher Energy Advisors. The bid date for the acreage is June 28th, 2012 with a closing date of August 15th, 2012.

The acreage also includes twenty-six operated producing Niobrara horizontal wells, one producing Codell horizontal well, one producing Greenhorn well and one producing vertical J Sand well. Chesapeake also has interest in twenty-four non-operated wells (15 producing).

 

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4 Responses to Chesapeake Energy Seeks to Sell Large Land Position in the DJ Basin

  1. Dan says:

    Are they selling the mineral rights or the surface properties or both?

    • RockPick says:

      Dan,

      I think they are probably selling both, if they have them, although I would have to confirm that. They are certainly selling both where the lease is held by production. While Chesapeake prefers to sell all the properties in one block, I believe they are amenable to buyers interested in purchasing the leases as sub-blocks denoted on the map.

      Regards,

      Rockpick

  2. geoff chappell says:

    why are they selling those properties?

    • RockPick says:

      Geoff,

      It has been reported on Reuters that the reason for the sale of the DJ basin properties is to raise cash to pay off the debts that Chesapeake has gotten itself into. As you may already know, Carl Ichan has taken a large position ownership position in the company and is looking to take control of the Board of Directors and place people who are favorable to his way of thinking in control.

      Regards,

      Rockpick

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