Is Chesapeake Energy Abandoning the Marcellus Shale Region?

This is huge news! 
The Marcellus Shale releases dry gas (no oil mixed in).  But dry gas is so cheap that it is not economically feasible to extract and sell.  Wet gas which contains some oil is much more profitable.  The oil separated from it can be sold for $90 a barrel.  Even T. Boone Pickens has dumped his investments in Chesapeake Energy.  Wet gas is found in the Utica Shale, a formation below the Marcellus and prevalent in SW PA and Ohio. 

The June shareholders meeting of Chesapeake Energy was tense as shareholders became aware of the difference between dry gas and wet gas.  Might they have been told of this from the beginning, they asked.  They are understandably very upset and confused.  Leaseholders are wondering if they will ever get the royalties they were promised. 

The Marcellus Shale Play is still at the speculative stage.  Now the actual figures are looking quite bad in comparison to the wildly optimistic predictions that landmen made to convince landowners to sign leases.

Read the article here.

Aubrey McClendon was stripped of his chairmanship of Chesapeake.  Now some are calling for his resignation from the Board of Directors.  Chesapeake may be headed for disaster as its cash flow dwindles by the day.