Chesapeake Energy Corporation has been developing the Fayetteville Shale for several years, and has enough confidence in the results to date that it has published a updated decline curve based on the aggregate drilling results from 239 of its operated horizontal wells drilled from the beginning of 2008.
Based on this new data, Chesapeake Energy Corporation increased its estimated ultimate recovery (EUR) from wells in the Fayetteville Shale from 2.2 bcfe to 2.4 bcfe per well. The company also raised its initial production rate for wells here from 1.9 mmcf/day to 2.1 mmcf/day. The company believes it can earn a rate of return of 24%, excluding any benefit from BP, Inc (BP), its joint venture partner in the Fayetteville Shale. This assumes a well cost of $3.0 million. ___________________________________________________________________
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