Chesapeake Rocks the Haynesville Shale
If investors have “reserves” (pun intended) about the amount of oil and gas in the Haynesville Shale, Chesapeake CEO Aubrey McClendon sure isn’t. The man is confident, and has the actions and results to show it.
Chesapeake (CHK) and Plains Exploration (PXP) and Production just entered into Haynesville Shale joint venture to drill some 6,875 wells, estimating the Haynesville Shale to hold 23-44 trillion cubic feat of natural gas equivalent after deducting an assumed 25% average royalty burdened. This is just shortly after McClendon commented at the annual meeting that the Haynesville Shale probably holds more natural gas than anyone expects. Probably as much as the U.S. uses in one whole year. Haynesville is starting to look better and better.
If you believe in McClendon like I do, I’d research the Haynesville Shale as much as I can. This looks like a real money maker…feels like Texas in the old days, or like being in “There Will be Blood“. I’ve found a great website to keep tabs on the Haynesville Shale and listed it on SuckingLess.com, my new investors resource site.
Chesapeake has a conference call this morning on the joint venture with Plains. Be sure to listen in. I know I will.
**Disclosure: I own shares of CHK as of this post. **
July 22nd, 2008 at 9:18 am
[...] July, we were riding the Natural Gas high like we had a straight shot to the moon, especially off big shale announcements like Chesapeake (CHK)’s Haynesville Shale venture. Sure, nothing goes vertical forever and we all knew natural gas would [...]