I’m curious as to how the Chesapeake Chapter 11 filing will affect landowners they have wells on. Also, will that give us an opportunity to get an increase in our mineral rights royalty interests?
There are quite a few postings in the forum about bankruptcies. You will probably be paid your royalties if the wells are currently on, but check your paperwork just in case. No, the leases will remain as written until they expire by their terms. They will just remain with Chesapeake, or get bought by other companies.
Go over to the NARO area and watch the bankruptcies topic. CPK is going to pay royalty owners.
I can’t see how it would increase the value of your mineral interests. It more likely significantly hurts the value of the minerals since there is now uncertainty around if the operator will continue paying royalties (they usually do, but its not a guarantee) and then the likelihood of any future drilling is way less when a company is in Ch. 11
RedHead, I think you are misunderstanding what I was asking. Obviously the mineral values are not going to increase unless they drill to a different formation or drill a horizontal well where there are only vertical wells.