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  • The Utica shale, where Chesapeake Energy (CHK) owns drilling rights to 1.2M acres with roughly a third in a zone it has described as rich in oil, is now considered unlikely to drive a major increase in its oil production. Utica will be "one of our foundational plays for decades," CEO Aubrey McClendon says, but if there's oil to be had there, it would be collected with the help of other companies. [View news story]
    It's basically common knowledge that Chesapeake is selling it's so-called 'non-core area acreage' in Ohio as it has been charged by the SEC of being over-extended.
    This may be a marketing ploy - that is to say it could give CHK more time to get well (by developing it's wet gas Utica wells first as they have said they would). If they don't end up selling their 'non-core area acreage' afterall (by discouraging would be buyers) they may be able to hang on to their 'cheap' leaseholds in the Utica and develop them later. If they end up selling them they make money anyway.
    Marketing strategy ?
    What can you believe ?
    Ohio Geological Survey says it's there.
    CHK apparently is now saying that someone else would have to harvest it.
    Business types are shrewd people.
    What can you believe ?
    Nov 14, 2012. 12:01 PM | Likes Like |Link to Comment
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