As previously disclosed, on August 28, 2019, Chesapeake Granite Wash Trust (the “Trust”) received written notification from the New York Stock Exchange (“NYSE”) that the Trust was not in compliance with the continued listing standards set forth in Rule 802.01C of the NYSE Listed Company Manual because the average closing price of the Trust’s common units (the “Trust Units”) was less than $1.00 over a 30 consecutive trading-day period. Because the Trust was unable to regain compliance with the applicable standards within a six-month cure period concluded February 28, 2020, the NYSE announced the suspension of trading of the Trust Units due to non-compliance with Rule 802.01C of the NYSE Listed Company Manual, effective as of the close of trading on February 28, 2020, and announced that it intended to initiate proceedings to delist the Trust Units.

As a result of the suspension and delisting, the Trust expects the Trust Units to begin trading on March 2, 2020 under the symbol “CHKR” on the OTC Pink Market, which is operated by OTC Markets Group Inc. (the “OTC Pink”). Subscribing broker-dealers view and publish quotes and negotiate trades in the OTC Pink securities on the OTC Markets Group Inc.’s SEC-registered Alternative Trading System, OTC Link® ATS, an interdealer quotation and trade messaging system. The OTC Pink is a significantly more limited market than the NYSE, and the quotation of the Trust Units on the OTC Pink may result in a reduction in demand for and the market price of the Trust Units, and could diminish interest in the Trust from investors, analysts and other market participants. No assurance can be given that an active market in the Trust Units will develop on the OTC Pink, that broker-dealers will continue to provide public quotes of the Trust Units on this market, that the trading volume of the Trust Units will be sufficient to provide for an efficient trading market, or that OTC Markets Group Inc. will not block quotes for the Trust Units in the future. More information about the OTC Markets Group Inc. is available on its website (https://www.otcmarkets.com/).

Item 7.01 Regulation FD Disclosure.

On February 28, 2020, the Trust issued a press release regarding the suspension of trading of the Trust Units on the NYSE and the expected transition of the quotation of the Trust Units to the OTC Pink, a copy of which is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

This Current Report on Form 8-K contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this Form 8-K, other than statements of historical facts, are “forward-looking statements” for purposes of these provisions (such as whether the Trust Units will begin trading on the OTC Pink Market) will be determined by factors outside of the control of the Trust and the trustee, including oil and gas commodity prices and actions of market participants. Other important factors that could cause actual results to differ materially include expenses of the Trust and reserves for anticipated future expenses. The Trust and the Trustee do intend, and neither assumes any obligation, to update any of the statements included in this news release. An investment in units issued by the Trust is subject to the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2018, as well as other risks identified in the Trust’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC. The Trust’s annual, quarterly and other filed reports are or will be available at the SEC’s website at www.sec.gov. The Trust does not intend, and assumes no obligations, to update any of the statements included in this Form 8-K or the news release.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

CHESAPEAKE GRANITE WASH TRUST Exhibit
EX-99.1 2 ex9912020-02x28chkrpressre.htm EXHIBIT 99.1 Exhibit   Exhibit 99.1News ReleaseChesapeake Granite Wash TrustFebruary 28,…
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About CHESAPEAKE GRANITE WASH TRUST (NYSE:CHKR)

Chesapeake Granite Wash Trust (the Trust) is a trust formed to own royalty interests for the benefit of Trust unit holders. The royalty interests held by the Trust (Royalty Interests) are derived from Chesapeake Energy Corporation’s (Chesapeake) interests in specified oil and natural gas properties located in the Colony Granite Wash play in Washita County. Chesapeake conveyed the Royalty Interests to the Trust from its interests in approximately 70 existing horizontal wells (Producing Wells) and Chesapeake’s interests in over 120 horizontal development wells (Development Wells) to be drilled on properties within the Area of Mutual Interest (AMI). The AMI lies within Washita County in western Oklahoma and is limited to Colony Granite Wash formation, where Chesapeake holds approximately 40,500 gross acres. Chesapeake has drilled and completed over 90 wells within the AMI. The Colony Granite Wash is located at the eastern end of Des Moines-age granite wash fields.