Ann: Trading Halt, page-13

Good one ruff....

There is a news release on bhp 18/01 that support your post.

So i went hunting ss to how much land they have and what they paid see below. Also talk about the Red Queen. So if it is true lets see how much theybuy into and for how much

From this link - http://www.mysanantonio.com/busines...ton-Petroleum-wants-out-of-shale-11950791.php

BHP entered South Texas in 2011 when it bought Petrohawk Energy Corp. in a $12.1 billion deal, which gave it acreage in the Eagle Ford Shale and Permian Basin in Texas, and the Haynesville Shale in Louisiana. That deal was for around 1 million acres in both states.

Also in 2011, BHP paid $4.8 billion to buy all of Chesapeake Energy Corp.’s interests in the Fayetteville Shale formation in Arkansas, a natural gas field.

Altogether, it invested $20 billion in U.S. shale.

The company later came under fire from investors for over-paying for its assets, especially those in natural gas fields after natural gas prices fell. It has been under pressure from activist investors to get out of shale altogether by selling or spinning off a new company.

BHP said the nature of shale, which requires companies keep drilling to maintain production, is problematic. The phenomenon is called the Red Queen, named after the character in Lewis Carroll’s “Through the Looking-Glass” who tells Alice she must run, “Faster! Faster!”

“Now, here, you see, it takes all the running you can do, to keep in the same place,” the Red Queen says. “If you want to get somewhere else, you must run at least twice as fast as that!”

“But one of the features of shale, which we’ve grown to like a bit less with time and see it a bit more of a curse, is that the investments that are demanded there are quite pro-cyclical. You have to continue to invest to actually maintain the value of those businesses,” CEO Andrew Mackenzie told analysts in a conference call.