Chesapeake Granite Wash Trust (NYSE:CHKR) is a Delaware statutory trust formed by Chesapeake Energy Corporation to own certain royalty interests in oil and natural gas wells in Washita County, Oklahoma, producing from the Colony Granite Wash Play within the broader Granite Wash formation of the Anadarko Basin. The common units representing beneficial interests in Chesapeake Granite Wash Trust do not represent interests in and are not obligations of Chesapeake Energy Corporation.
Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids and natural gas properties located in Washita County, Oklahoma, which were conveyed to the Trust by Chesapeake Energy Corporation (NYSE:CHK). These royalty interests entitle the trust to receive, after the deduction of post-production expenses and taxes:
- 90% of the proceeds attributable to Chesapeake Energy Corporation’s net revenue interest in the sale of production from 69 horizontal producing wells; and
- 50% of the proceeds attributable to Chesapeake’s net revenue interest in the sale of production from 118 horizontal development wells to be drilled by Chesapeake Energy Corporation within a defined Area of Mutual Interest (AMI).