Company Gross Operated Daily Production Exceeds 1.0 Bcf, 500 Mmcf,
400 Mmcf and 100 Mmcf in the Barnett, Haynesville, Fayetteville and
Marcellus Shale Plays, Respectively
OKLAHOMA CITY--(BUSINESS WIRE)--Oct. 22, 2009--
Chesapeake Energy Corporation (NYSE:CHK) today announced company record
production rates in all four of its Big 4 shale plays.
In the Barnett Shale, Chesapeake’s gross operated daily
production has recently exceeded 1.0 billion cubic feet of natural gas
(bcf) from approximately 1,500 Chesapeake-operated wells. Chesapeake
made its first investment in the Barnett Shale in late 2004 with an
18,000 acre acquisition that included gross operated production of just
25 million cubic feet (mmcf) per day. In less than five years,
Chesapeake has become the second-largest producer of natural gas, the
most active driller and the largest leasehold owner in the Core and Tier
1 sweet spots of Tarrant and Johnson counties. In working to achieve
this significant production milestone, Chesapeake’s Barnett team
pioneered efforts in pad drilling, multi-stage fracture stimulation and
urban drilling.
Two notable recent wells completed by Chesapeake in the Barnett are as
follows:
-
The Day Kimball Hill A1 in Tarrant County, TX achieved a peak rate of
16.4 mmcf per day and is expected to produce an average of more than
13.0 mmcf per day in its first month and exceed the previous monthly
industry Barnett production record established by two
Chesapeake-operated wells this summer that averaged more than 9.0 mmcf
per day; and
-
The Chaney 2H in Johnson County, TX achieved a peak rate of 10.0 mmcf
per day.
In the Haynesville Shale, where Plains Exploration & Production
Company (NYSE:PXP) is Chesapeake’s 20% joint venture partner,
Chesapeake’s gross operated daily production has recently reached 500
mmcf from approximately 125 Chesapeake-operated wells, or roughly 20% of
the number of wells needed to reach this production level in the
Barnett. Chesapeake announced its discovery of the Haynesville Shale in
March 2008 and has quickly accelerated its development of the play.
Chesapeake is the largest leasehold owner, largest producer and most
active driller of new wells in the Haynesville.
Two notable recent wells completed by Chesapeake in the Haynesville are
as follows:
-
The Caspiana 13-15-12 H-1 in Caddo Parish, LA achieved a peak rate of
20.2 mmcf per day; and
-
The Bradway 24-15-12 H-1 in Caddo Parish, LA achieved a peak rate of
18.6 mmcf per day.
In the Fayetteville Shale, where BP America (NYSE:BP) is
Chesapeake’s 25% joint venture partner, Chesapeake’s gross operated
daily production has recently exceeded 400 mmcf from approximately 450
Chesapeake-operated wells. Chesapeake is the second-largest producer and
the second-largest leasehold owner in the Core area of the Fayetteville.
Two notable recent wells completed by Chesapeake in the Fayetteville are
as follows:
-
The Reva Deen 7-8 1-15H9 in White County, AR achieved a peak rate of
8.0 mmcf per day; and
-
The Collinsworth 7-16 2-10H in Conway County, AR achieved a peak rate
of 6.2 mmcf per day.
In the Marcellus Shale, where StatoilHydro (NYSE:STO) is
Chesapeake’s 32.5% joint venture partner, Chesapeake’s gross operated
daily production has recently reached 100 mmcf from approximately 60
Chesapeake-operated wells. Chesapeake entered the Marcellus Shale play
in 2005 through its acquisition of Columbia Natural Resources, LLC. In
2007, the company accelerated its leasehold acquisition in the play and
initiated its first horizontal drilling activities. Chesapeake is now
the largest leasehold owner in the Marcellus, the most active driller
and expects to become the largest producer of natural gas from the play
by year-end 2009.
Two notable recent wells completed by Chesapeake in the Marcellus are as
follows:
-
The Clapper 2H in Susquehanna County, PA achieved a peak rate of 10.1
mmcf per day; and
-
The Otten 2H in Bradford County, PA achieved a peak rate of 8.9 mmcf
per day.
Management Comments
Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, commented,
“We are pleased to announce that Chesapeake has set company records and
reached significant production milestones in all four of our Big 4 shale
plays. We are very proud of the remarkable accomplishments that our
shale teams have delivered. We look forward to continued strong results
from these world-class fields for years to come.”
Chesapeake Energy Corporation is one of the leading producers of
natural gas in the U.S. Headquartered in Oklahoma City, the
company's operations are focused on the development of onshore
unconventional and conventional natural gas in the U.S. in the Barnett
Shale, Haynesville Shale, Fayetteville Shale, Marcellus Shale, Anadarko
Basin, Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin,
South Texas, Texas Gulf Coast and East Texas regions of the United
States. Further information is available at www.chk.com.
Source: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Investor Contact:
Jeffrey
L. Mobley, CFA, 405-767-4763
Senior Vice President –
Investor
Relations and Research
jeff.mobley@chk.com
or
Media
Contact:
Jim Gipson, 405-935-1310
Director – Media
Relations
jim.gipson@chk.com