The deal that Chesapeake Energy Corp. made last week to sell half of its leasehold in the Mississippian Lime was calculated at around $2,500/acre gross, or less than $1,000/acre net, not necessarily the price that the market had been expecting. Energy analysts said the lower-than-expected price may be attributed to several things: foreign firms getting more savvy about undeveloped leaseholds, the company’s hurry to fix its balance sheet, or perhaps the value of the formation itself.
Risking
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A ‘Miss’ in Lime Sale for Chesapeake? Operators Remain Optimistic
The deal that Chesapeake Energy Corp. made on Monday to sell half its leasehold in the Mississippian Lime was calculated at around $2,500/acre gross, or less than $1,000/acre net, not necessarily the price that the market had been expecting. The lower expected price may be attributed to several things, said analysts: foreign firms getting more savvy about undeveloped leaseholds, the value of the formation, or Chesapeake’s hurry to fix its balance sheet.
February 27, 2013
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