Harry Johnson

Harry Johnson
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  • Still Too Much Uncertainty At SandRidge  [View article]
    I haven't been keeping up with the actual results; just the local gossip, which is: Miss Lime is a big disappointment in Kansas. Very irregular in thickness and natural fractures. Some wells coming in at less than 100 barrels per day with fast decline.

    Caveat: Unverified info, but sometimes oilfield chatter is more reliable than news releases and information filed with state agencies.
    Apr 23, 2013. 05:48 PM | Likes Like |Link to Comment
  • Still Too Much Uncertainty At SandRidge  [View article]
    Ignoring the historical results from development of the Mississippi formation, which has been more or less continuous since the 1960's is not without penalty. The $64 question: Will horizontal drilling deliver ultimate recoveries that justify the higher costs, or will the aggregate final economic result be no better than the aggregate of vertical wells ? The Mississippi has always been a game of averages, and it appears will continue to be so. Early on, it seemed that drilling any seven wells in a row would produce three dogs, three average wells, and one far enough above average to offset the dogs, bringing the overall program up to average. That illusion was shattered, of course, when ten or fifteen in a row turned out to be stinkers. Ostensibly, there are better tools now to pick the sweet spots, but I think the jury may still be out.
    Apr 22, 2013. 12:16 PM | 3 Likes Like |Link to Comment
  • Investors fear Harold Hamm's contentious divorce could lead to a record financial settlement - he's worth an estimated $11.3B - and threaten his control of fast-growing Continental Resources (CLR -2.8%). Under Oklahoma family law, wealth accrued through the efforts of either spouse during a marriage would typically be subject to "equitable distribution" between the parties.  [View news story]
    Divorce lawyers are salivating
    Mar 21, 2013. 04:00 PM | Likes Like |Link to Comment
  • In what should not be a shock, Chesapeake Energy (CHK -3%) discloses the SEC is continuing its informal investigation of the company and has issued subpoenas for documents and testimony. The probe regards the practice of giving the CEO (departing next month) stakes in every well the company drills.  [View news story]
    Just the SEC trying to look relevant.
    Mar 1, 2013. 03:51 PM | 1 Like Like |Link to Comment
  • Chesapeake's Mississippi Lime Joint Venture Falls Woefully Short Of Expectations  [View article]
    How does selling $12 Billion in assets in 2012 to reduce debt, but ending the year with little change in debt make for a stronger company ? Did all of the $12 Billion end up in the development of oil production, or was a lot of it consumed by inefficiencies ?
    Feb 26, 2013. 08:59 PM | 2 Likes Like |Link to Comment
  • Chesapeake's Mississippi Lime Joint Venture Falls Woefully Short Of Expectations  [View article]
    "As far as the Miss goes, from public information, it appears to be pretty marginal with the occasional super good well carrying everything."

    Just like it was for the thousands of vertical wells completed in the Mississippi in the last half of the 20th Century.
    Feb 25, 2013. 10:15 PM | Likes Like |Link to Comment
  • Chesapeake's Mississippi Lime Joint Venture Falls Woefully Short Of Expectations  [View article]
    There are bubbles in acreage prices, just like those in housing, dot com companies and the currrent price of crude.
    Feb 25, 2013. 04:29 PM | 5 Likes Like |Link to Comment
  • The Numbers Are Finally Catching Up With Chesapeake Energy  [View article]
    And neither is solar, wind, nuclear, ethanol, wood, or buffalo chips, but some are cleaner than others and some are expensive enough to collapse the economy if their use is mandated without regard to cost.
    Feb 23, 2013. 04:43 PM | 2 Likes Like |Link to Comment
  • The Numbers Are Finally Catching Up With Chesapeake Energy  [View article]
    Truth in two paragraphs.
    Feb 21, 2013. 09:04 AM | Likes Like |Link to Comment
  • The Numbers Are Finally Catching Up With Chesapeake Energy  [View article]
    Wouldn't it be more accurate for the title to be "Investors and Analysts are finally catching up with Chesapeake's numbers ?" A careful reading of the 10K footnotes and some knowledge of the history of the industry showed where this company was headed at least a decade ago, oil and gas prices notwithstanding.
    Feb 20, 2013. 01:33 PM | 6 Likes Like |Link to Comment
  • Bakken Update: Triangle Petroleum Is A 2013 Top Bakken Stock Pick  [View article]
    Michael:

    "...reduced spacing to 600 feet with no well communication."

    Always hard for an old dog to grasp new concepts. Does this mean surface locations are 600 feet apart or that no part of any well's laterals are closer than 600 feet to any other well's laterals ?
    Feb 1, 2013. 01:58 PM | Likes Like |Link to Comment
  • McClendon's Departure From Chesapeake Should Prompt Further Changes And Equity Appreciation  [View article]
    Good, because a country can't run a balance of payments deficit and reduce public and private debt at the same time without defaulting on one or all.
    Jan 31, 2013. 11:01 AM | Likes Like |Link to Comment
  • McClendon's Departure From Chesapeake Should Prompt Further Changes And Equity Appreciation  [View article]
    A point seemingly missed by most commentators King.
    Jan 31, 2013. 10:58 AM | Likes Like |Link to Comment
  • Chesapeake: Is Management Sending Hints Of A Complete Buyout?  [View article]
    Any serious buyer would want to have the "McClendon problem" out of the way before an offer...

    Why would a serious buyer care one way or the other since McClendon couldn't block an offer and it wouldn't take more than 30 seconds to give him a pink slip when the deal closed ?

    Stranger things have happened vis-a-vis acquisitions, but it is hard to see $50/share when development of half of CHK's resource base is uneconomic at present, the Company is supposedly adding quality oil reserves, yet not fast enough to offset continuing impairments (another $3.3 billion in the third quarter), and net liabilities increase every quarter. $50/share comes out to about $33 billion, and if that is net $50 to stockholders, adding net liabilities brings the purchase price to $50 Billion.

    Seems like a prudent buyer would wait for the auditors and outside engineers to finish up the 2012 financials before making a move. Moreover, even letting a prospective buyer in the door before a respectable period of time has passed after the COB has started unequivocally that the Company isn't for sale, as Archie Dunham did today, could conceivably raise the ire of the new SEC Chair.

    But what do I know. I sold my company when oil was $10/barrel and NG around $1.50/Mcf. (That isn't a complaint).
    Jan 30, 2013. 08:59 PM | 1 Like Like |Link to Comment
  • SandRidge Energy: Should Tom Ward Go?  [View article]
    Or maybe "Thundermug Energy." (For you youngsters out there, a Thundermug is what they called the pot kept under the bed in the old days in case you had a call from nature in the middle of the night and didn't want to take the long cold walk to the outhouse.)
    Jan 30, 2013. 01:22 PM | 1 Like Like |Link to Comment
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