Chesapeake Energy (CHK) has built a sizable acreage position in almost all the major shale plays in North America. This is a summary of its position in the Marcellus Shale as of 3/31/2009.
Acreage - 1,300,000
Drilling Spacing - 80
Drilling Locations - 4100
Proved Reserves - 74 Bcfe
Current Daily Production - 30 mmcfe
Chesapeake Energy expects production to reach 100 mmcfe by the end of 2009. The company entered into a joint venture with StatoilHydro ASA (STO) with its properties in the Marcellus Shale. StatoilHydro ASA has a 32.5% interest in the acreage, and must fund 75% of the capital expenditures through 2012 up to a specified amount.
Chesapeake Energy plans on spending $350 million in gross capital expenditures in 2009, and will average 15 operated rigs in the Marcellus Shale.
Do you use technical analysis to find the proper entry point before you buy a stock? Click Here for a free Trend Analysis.