Daniel R Moore
Portfolio strategy, bonds, oil & gas, long-term horizon

Chesapeake Granite Wash PV-10 Update - Disaster Continues

On March 14, 2014 Chesapeake Granite Wash Trust (NYSE:CHKR) published its 10-K report which contained an updated standardized measure of proven reserves (PV-10). The updated report showed continued very poor drilling results. As shown in the table below, the total reported net reduction in proven reserves since the IPO of the Trust in July of 2011 is 16,329 MBOE, a whopping 36.9% of the estimated reserve level presented by Chesapeake (NYSE:CHK) to potential unit holders when capital was being raised to fund the Trust.

(click to enlarge)

The PV-10 standardized measure per unit as of 12/31/2013 fell to $6.78. On March 14, 2014 the Trust units were trading at a value of $11 on the NYSE,...

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