Stay tuned to this blog post for updates on the exit of Chesapeake, who was Arlington’s predominant operator, as the baton of our urban drilling operator passes to a second tier driller.
Update 8/16/16: DallasNews reported of the natural gas pipeline/transporter …“Williams said its new customer guaranteed spending $40 million a year on drilling through 2018 plus an unspecified amount on well connections and other projects”.
Listen here to Episode 80 podcast of Chesapeake’s exit from the Barnett Shale….there is mention of emissions in urban areas and lawsuits over royalties issues.
On 8/1/16 Barrons reported “Saddle Operating LLC is comprised of former Exco Resources executives including former CEO, Doug Miller and CFO, Doug Ramsey”.
Saddle is owned by First Reserve. who owns interests in solar & wind farms, so there is hope in the world*…whenever financials drive it.
On 8/10/16 press releases reported that Chesapaeake’s Barnett Shale assets were “transferred” per the Star Telegram. Hah…so there was no cash for these clunkers.
And as for the employees still working in the Barnett shale, the Chk CEO said… “Chesapeake still has about 170 employees working in the Barnett Shale, and Lawler said they hopefully will transition to Saddle Barnett Resources”.
Bloomberg reported that Williams Partners plan to revitalize drilling in the Barnett Shale by a conditional gas gathering arrangement in “tying the monthly fees it charges for gathering and delivering fuel to the price of gas traded on the New York Mercantile Exchange”.
“Williams said it will receive $754 million in cash that’ll be used to pay down debt”.
It was reported that Chesapeake left the Barnett Shale to “escape almost $2 billion in onerous pipeline contracts”…..”The company will receive no proceeds from Saddle for handing over the Barnett assets, which in late July were estimated to be worth as much as $1 billion”.
Chesapeake is giving away ONE BILLION value in Barnett assets?…hmmm thats the same amount they want to spend (throw away) to build a new Ranger Stadium. How ironic that at least one of the Ranger’s owners made their billions with big oil & gas interests. I guess times R tuff in oily land and so the Arlington residents get to get fracked by these oily men twice: 1) urban drilling exposures 2) corporate welfare for private biz stadium upgrade
Now Chesapeake has to pay hundreds of millions to get out of the (bad deal) midstream/pipeline contracts. (Digressing) And so will the Texas Rangers baseball owners do a similar move to get out of the current Rangers contract with the City of Arlington that has 8 years left? DOUBT IT….Councilman Rivera responded to my question if Texas LIVE would go forward regardless of the vote…so Rangers have skin in Arlington to stay in.
Back to the Chesapeake story….
The details from the financial carnage Chk endured over the years is dizzying. Now the City of Arlington made out like a bandit (for now) as they got in when the natural gas payouts were high…but the pendulum swings both ways as having industrialized our town and with ever growing aging infrastructure time will be our enemy.
Our best hope is that Chesapeake’s new owners will pony up to plug and abandon and restore these padsites to as best its original state, but the well bores will always be there leak-lurking.
It is hard to wrap your mind around the info below that Saddle has ONE EMPLOYEE???!!!
Second Tier drilling=Arlington frack wells!
*Here is my love letter to First Reserve who owns Saddle….“In the new Barnett dry gas padsite acquisition from Chesapeake, please assure me that after the hyperbolic decline curve is exhausted on existing wells that you will plug & abandon these sites and add solar panels? Urban drilling has been hell for us…I have had nose bleeds when those lift compressors came in by the ATT Stadium….I sued CHK in small claims but failed…and really have done my all to protect my residential rights to not have industrial intrusions…please help me know your intentions with these urban padsites, thank you”.