Chesapeake Energy (CHK) disclosed a 1.25 million acre position in the Utica Shale in Ohio, and plans to develop this leasehold aggressively over the next five years. During the earnings conference call held on July 29, 2011, the company disclosed additional information on the Utica Shale.
- Total investment of $1.5 billion to $2 billion to date in the Utica Shale.
- Most of the permits applied for are in the wet gas area, which the company believes will have the best rate of return.
- Chesapeake Energy will pursue greenfield development of midstream assets in the company’s subsidiary and then eventually drop the assets down to Chesapeake Midstream Partners.
- Many of its leases are held by production as the company acquired deep rights from shallow producers. The balance of the leases are standard five years with a five year extension.