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.