Looks like CHK is still selling on the cheap, SWN pays $93 million for 162K acres in Marcellus
My calculator says that = $574 an acre. I think everyone put way too much emphasis on what CHK sold it's Miss Lime acreage for. Miss wasn't even a pure sale....it's a 50% JV and CHK was in a serious bind. SD unlike CHK has Cap-ex...= drilling capacity. CHK is in a shortfall and has to dump assets. The CHK pricing of Miss Lime adversely discounted SD and I think that will prove to be a hole card for longs. Sometimes bad news ...can end up playing to your advantage, JMHO
Read the posts on the CHK board. These leases were expiring and would have required a large nut to renew. CHK received $93 million for leases that the acquirer is going to have to pay a bunch to renew. So basically they received $93 million for first right of renewal. Not sure what they paid for these leases but for a cash starved company renewing them was questionable.