Buell 8H Motion to Intervene

Buell Motion to Intervene May 4-10

In a key development, Kenneth Buell, surface owner for Chesapeake’s Buell 8H well, Harrison County, Ohio, files to join Jewett Sportsmen and Farmer’s Club, Inc. v. Chesapeake Exploration, LLC. The implications are potentially significant, though hard to predict given the fluid nature of both Chesapeake’s standing with stockholders and industry interest in the liquid-rich Utica Shale.

A few facts are undisputed, however. First, in discussing the Buell 8H during the Q1 2012 earnings call, CEO Aubrey McClendon said “it’s a very important well” and “our best shale well ever”. The Buell 8H was the first well drilled by Chesapeake in the Utica Shale of eastern Ohio – and the best to date, by far.

Second, Buell’s motion points out that Chesapeake does not own horizontal drilling rights under his land, according to the construction given to identical deed language in the underlying litigation.

In his accompanying Motion for Permanent Injunction, Buell asks that the Buell 8H be shut-in by court order. Again, this result is virtually guaranteed by the court’s decision to enter a permanent injunction in the underlying litigation.

Beyond embarrassment and possible damage to the now-famous well (including to Chesapeake’s ability to calculate the decline curve), the case risks exposing Total’s lack of ownership in the first well Chesapeake purportedly transferred under their 2011 Utica Shale Joint Venture. At $2.3 Billion, the deal valued Chesapeake’s Utica acreage at around $15,000 per acre. And no, I don’t believe that included a discount for lack of horizontal drilling rights…

Be sure to see the Motion for Permanent Injunction we’ve posted and check the site for ongoing updates.

-Biggest Fairy Tale

on Twitter @theBIGfairytale

About thebiggestfairytale

on Twitter @theBIGfairytale
This entry was posted in Uncategorized, Utica Shale of Ohio. Bookmark the permalink.

2 Responses to Buell 8H Motion to Intervene

  1. ralph d bailey says:

    where is this buell8h well exactly located..whats the physical address? my email address is ralphdbailey49@yahoo.com please reply thankyou

    • It’s about 5 miles north of Cadiz, Ohio, in the far eastern part of the state. It’s a fairly rural area, so there may not be a street address in the sense you are thinking. If you want more specific information you might want to call Buell’s attorney. His name is T. Owen Beetham.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s