Reuters: Encana Tipped Off Chesapeake to Land Plans in Michigan
Rival natural gas producers Encana Corp. and Chesapeake Energy Corp. shared sensitive information concerning Michigan land deals that allowed Chesapeake to alter its strategy and gain an upper hand in talks with Michigan land owners, Reuters reported Wednesday, citing documents and emails it reviewed.
Emails show that Encana and Chesapeake traded information about Encana's plans on halting new land leasing in Michigan in 2010, and the information allowed Chesapeake to change its own leasing strategy in weeks following that helped cause Michigan land prices to drop dramatically from record highs, the report said.
The two companies are currently under review by the Justice Department and Michigan authorities over possible violations of federal and state laws through their discussions about land prices in the state, Reuters said.
Chesapeake declined to comment to Reuters on its discussions with Encana.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Chesapeake To Cut Rig Count, Bring Fewer Wells To Production (Aug 03)
- Chesapeake CEO: Downturn Challenges Helped Oil, Gas Companies (Mar 07)
- Chesapeake Energy Posts Smaller Quarterly Loss (Feb 23)
Company: EnCana more info
- Canada's Encana Smashes Profit Estimates, Shares Rise (Jul 21)
- Encana To Sell Natgas Assets To Caerus Oil For $735MM (Jun 09)
- Encana Boosts Capital Spending By 50% Amid Oil Recovery (Feb 16)