Chesapeake Energy Corporation (CHK) reported its second quarter earnings and also issued an operations update on its exploration and development activity. Chesapeake Energy Corporation now has 310,000 acres under net lease in the Barnett Shale.
Chesapeake Energy Corporation updated its curve and normalized production history chart based on the results of 849 operated wells drilled in the Barnett Shale since the beginning of 2008.
The company estimates that it would earn a rate of return of 32% based on the following inputs:
Flat NYMEX natural gas prices of $7.00 per mcf
EUR of 2.65 bcfe
Well cost of $2.6 million
Initial Production rate of 2.5 mmcfd
First year decline rate of 70%
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