Chevron and Anadarko in West TX

#1

Chevron and Anadarko are merging. I am from out of state with Anadarko as my Lessee. With the change would these leases be up for renegotiation? I suspect not but does anyone have any opinions or thoughts?

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#2

No, those leases will remain in effect.

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#3

I was going to ask the same thing as we have wells with anadarko as well. Can we expect any changes in production or anything like that?

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#4

Current production will have natural decline that is expected. Leases will remain in effect. Chevron may have different goals than Anadarko, so that will take a while to unfold. I worked many years in my former company as partners with Chevron and they have good folks working for them. Know lots of folks at Anadarko as well, so hope they keep as many as possible.

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#5

Yeah understood on natural decreases. Our well is fairly new so hopefully it produces for awhile now.

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#6

With Anadarko being your lessee, the lease will be assigned to Chevron. There will not be any renegotiations. Your lease most likely gives them the right to assign the lease without your consent. If your consent is needed, which can not be unreasonably withheld, you will be notified by Anadarko.

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#7

Not surprising but it would be nice for me if I could tweak it a little more to my favor.

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#8

Hello All, here’s an update related to the acquisition of Anadarko by Chevron:

Follow-on acquisitions are expected. Obviously no guarantees, but this has been news since before CERA week.

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