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.