Barnett Shale

Chesapeake Energy Issues Barnett Shale Update For The Second Quarter Of 2010

Chesapeake Energy Corporation (CHK) issued its regular operational update for the second quarter of 2010, and provided new information on its operations in the Barnett Shale.

Chesapeake Energy has 220,000 net acres in the Barnett Shale, with proved reserves of 2.9 Tcfe (using the 10 year average strip pricing as of 6/30/2010). The company recently raised its estimated ultimate recovery (EUR) per well in the Barnett Shale from 2.65 to 3.0 Bcfe.

Chesapeake Energy reported average daily production from the Barnett Shale of 535 million cubic feet equivalent per day in the second quarter of 2010. The company is currently operating 22 rigs in the Barnett Shale, and plans to operate an average of 23 rigs in the Barnett Shale in 2010. These rigs will drill a total of 245 net wells.

Chesapeake Energy reported three recent well completions in the Barnett Shale:

The Brown 7H, located in Johnson County, Texas, produced at a peak 24-hour production rate of 8 million cubic feet of natural gas per day.

The Fellowship 5H, located in Dallas County, Texas, produced at a peak 24-hour production rate of 7.9 million cubic feet of natural gas per day.

The Greenbriar 2H, located in Tarrant County, Texas, produced at a peak 24-hour production rate of 9.2 million cubic feet of natural gas per day.

Chesapeake Energy Issues Barnett Shale Operational Update

Chesapeake Energy Corporation (CHK) issued an operational update for the first quarter of 2010. The company provided extensive commentary on its activities in the Barnett Shale.

Chesapeake Energy has 215,000 net acres in the Barnett Shale, with proved reserves of 2.86 Tcfe (using the 10 year average strip pricing). Current daily production from the Barnett Shale is 530 million cubic feet equivalent per day, and the company has 23 rigs operating in the play.

Chesapeake Energy said that the company would operate an average of 24 rigs in the Barnett Shale in 2010, and drill a total of 275 net wells. Three recent well completions in the Barnett Shale were:

The Donna Ray East 3H, located in Johnson County, Texas, produced at a peak 24-hour production rate of 12 million cubic feet of natural gas per day.

The Darby 1H, located in Johnson County, Texas, produced at a peak 24-hour production rate of 9.7 million cubic feet of natural gas per day.

The Brown 2H, located in Johnson County, Texas, produced at a peak 24-hour production rate of 9.2 million cubic feet of natural gas per day.

Chesapeake Energy Reports Three Barnett Shale Completions

Chesapeake Energy released the results of three recent well completions on its properties in the Barnett Shale. (24-hour peak rates)

Auld 1H – Ellis County, Texas – 13 million cubic feet

Crowley Eagles 4H – Tarrant County, Texas – 10.4 million cubic feet

Crowley Eagles 1H – Tarrant County, Texas - 9.6 million cubic feet

In 2010, Chesapeake Energy plans on increasing its rig count to an average of 28, and drill 300 net wells in the Barnett Shale.