Via: The Business Journal- Chesapeake Puts Land for Sale
Tuesday, June 5, 2012
According to The Business Journal, Chesapeake Energy Corp. is selling gas drilling rights to 337,481 acres in eastern Ohio. If you haven’t heard, Chesapeake is in financial trouble after it was revealed that the company is carrying a heavy debt load. The price of natural gas is also falling, further hindering the company’s growth potential.
Here’s an excerpt:
Chesapeake controls leases for 1.3 million acres in eastern Ohio and has paid more than $2 billion to landowners in bonus payments for the drilling rights. The Oklahoma City energy giant, the nation’s second most active natural gas drilling company, must raise $7 billion by year-end to avoid defaulting on its loan covenants, analysts say. Chesapeake has said it plans to sells $12 billion in assets in the next year to bridge its cash-flow gap.
Read the rest of the article here.
Maybe BP will buy some of the land up for sale?
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.