Chesapeake Energy Corporation (CHK) issued an operational update for the second quarter of 2010, and updated investors on its activities in the Eagle Ford Shale. The company has increased its acreage position in the Eagle Ford Shale to 550,000 net acres, an increase of 150,000 net acres from the first quarter of 2010.
Chesapeake Energy has drilled and completed 7 gross wells to date on its acreage in the Eagle Ford Shale, and estimates that it will operate an average of 5 rigs during 2010. The company will ramp up activity much higher over the next two years, and will operate an average of 16 rigs in 2011, and 27 rigs in 2012.
Chesapeake Energy reported the completion of 3 recent wells in the Eagle Ford Shale:
The PGE Browne 1H, located in Webb County, Texas, produced at a peak 24-hour production rate of 11.2 million cubic feet equivalent per day, composed of 4 million cubic feet per day of natural gas and 1200 barrels per day of oil.
The Lazy A Cotulla 1H, located in Dimmit County, Texas, produced at a peak 24-hour production rate of 5.9 million cubic feet equivalent per day, composed of 300,000 cubic feet per day of natural gas and 930 barrels per day of oil.
The Traylor North 1H, located in Zavala County, Texas, produced at a peak 24-hour production rate of 5.9 million cubic feet equivalent per day, composed of 300,000 cubic feet per day of natural gas and 930 barrels per day of oil.
Chesapeake Energy is engaged in discussions with third parties regarding a joint venture on its acreage in the Eagle Ford Shale. The company expects to make an announcement by the end of the third quarter of 2010.
