Reserves and pressure in Granite Wash area of CHK wells are in bottom range
This is not worth holding for the yield because future drilling 50-60 wells could show lower yield upon drilling each well and as that news comes out it will drive down unit price. Now if want to take the risk that the return is better, hold on to the units, but the fields are showing they are no where near the high range of projections. In addition the price of natural gas is not going to be much more than $4mcf for the next year. I just do not think this is worth holding. Risk is to great. This security is priced to high compared to the other trusts out there and frankly, the risk of future drilling is not worth the risk.
The Seeking Alpha article reported that CHKR said these wells production was falling at a quicker rate than expected and the problem appears to the specific area of the Granite Wash. So if the wells already drilled are seeing a sharper decline ratio what does that portend for the rest of the wells to be drilled in this area.
As each of those wells is drilled what happens after 6-12 months if the decline continues to be greater than expected. I would suspect that the unit price decline of 2013 will continue to get hit every time negative news hits. You do not need a petroleum engineering degree to figure out what happens with yield driven investors when faced with negative news.