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Shares of Gastar Exploration (GST -25.1%) are reeling after Chesapeake (CHK) files a lawsuit...

Shares of Gastar Exploration (GST -25.1%) are reeling after Chesapeake (CHK) files a lawsuit seeking rescission of certain transactions that closed in 2005 involving GST's Hilltop Prospect in Texas and CHK's investment in GST common stock. In addition to its original initial investment of $81.6M, CHK seeks reimbursement of additional lease and well costs.
Comments (9)
  • westelk
    , contributor
    Comments (279) | Send Message
     
    I am beginning to wonder if the trouble at CHK isn't a lot deeper than they let on if this is the kind of relief they must pursue. My goodness--you admit in the complaint you knew about this problem, and you still sue? There is a pattern of CHK looking for every penny in every possiblity.

     

    From the referenced article:

     

    As Chesapeake admits in its complaint, it was well aware of Navasota Resources L.P.'s adverse claims to the properties before it closed the transaction with Gastar and the possibility of an adverse outcome in the Navasota claim was addressed in the transaction documents. Gastar rejects Chesapeake's claims and intends to vigorously defend itself against this lawsuit."
    3 Oct 2012, 03:13 PM Reply Like
  • Mark Anthony
    , contributor
    Comments (3601) | Send Message
     
    "There is a pattern of CHK looking for every penny in every possiblity."

     

    LOL.
    5 Oct 2012, 03:54 PM Reply Like
  • Scooter-Pop
    , contributor
    Comments (2095) | Send Message
     
    The "Eaglebine" Horizontal Oil Play has Grimes, Robertson and Leon, Texas Counties heating up with Lease Hounds. Gas Star and Aubrey's Attorneys realize the increasing value of the JV Leasehold, the likely real basis for the Law Suit?
    11 Oct 2012, 04:05 AM Reply Like
  • Ron Reed
    , contributor
    Comments (285) | Send Message
     
    Wow! new levels of depravity at CHK. Whats next? Strong arming the employees of their lunch money?
    3 Oct 2012, 03:24 PM Reply Like
  • zebra114
    , contributor
    Comments (251) | Send Message
     
    CHK is already under investigation for ERISA complaints. Seems they didn't place money into the retirement accounts of employees. The employees were forced to take CHK stock in lieu of cash. Then Aubrey went and manipulated land deals for himself at the same time and with the same banks and investment houses as he was wheeling and dealing with for CHK.

     

    So I guess the answer to your question is yes. Their lunches during retirement were being strong armed from them.
    3 Oct 2012, 06:05 PM Reply Like
  • Shipwreck
    , contributor
    Comments (6) | Send Message
     
    I suppose you both think they shouldn't get their money back if they don't get the wells? I'd hate to see what kind of business you run if $81.6 million is no big deal to you.
    3 Oct 2012, 04:59 PM Reply Like
  • Ron Reed
    , contributor
    Comments (285) | Send Message
     
    They knew of the risk prior to joining the venture (they openly admit it in the filing). They received a substantial discount due to the risk. And now they want money back and money back on common shares they purchased?! No, I don't think they should get anything back. That is standard contract law. Beyond that, if they get money back I want my money back on the investment I've lost owning CHK stock and options. Don't take me wrong, I'm not a bitter investor, I knew the risks when I bought and have made money and will make money on CHK, but this filing is plain stupid.
    3 Oct 2012, 05:04 PM Reply Like
  • Scotty Dont
    , contributor
    Comments (28) | Send Message
     
    agree with the "stupid" comment but it sucks for anyone holding GST yesterday
    4 Oct 2012, 01:52 AM Reply Like
  • Scooter-Pop
    , contributor
    Comments (2095) | Send Message
     
    Someone was a Buyer of GST-A (GST's Preferred that pays Monthly, Yield over 10%) late in the Trading Day yesterday. Porter a Buyer?
    4 Oct 2012, 05:52 AM Reply Like
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