Friday, October 08, 2010

I think we've moved on past "Plastics"

Remember when Lehman Brothers was hording uranium...  OK, that's pretty out there, but that is what came to mind when I read about the great mystery buyer of natural gas-related leases. 

huh, you say.

I really am surprised no local news coverage of this: Mystery buyer, mystery price for 500,000 acres of Appalachian leases

Let's count.. 500K acres times what $/acre the market is at these days?  I think that is a couple orders of magnitude more $$ than is involved in say the former Hilton Hotel bankruptcy that gets lots of coverage all around.

Read the last line of that link to get to the interesting point.  Whomever was buy side on that must be one of two things.  Platts suggests only the first option, that the buyer was a publicly reporting company, but one that is so big that a multi-billion dollar deal did not warrant public disclosure of a material event.  The other possibility is that the buyer was a private entity.  I'm thinking a sovereign player.  Who is left though?  The Sultan of Brunei? 


Anonymous The Wiz said...

I talked to a guy that said he has put together 300,000 acres, mostly already under old leases and held by production by shallow wells, that will be auctioned off this month or next. I felt that was too big to move at once and would have been better off being divided into sections by region.

The largest group I know of was the Wyoming County group that had 80,000 acres sold for $5,750/acre two years ago.

The state auctioned off large parcels of state game lands last year but I don't know how large each parcel was or the total acreage leased.

BTW, Chris I emailed you about the media contact that wanted to talk to me but I haven't heard back. Email me at

Friday, October 08, 2010 8:18:00 PM  

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