Haynesville Shale

Chesapeake Energy Issues Haynesville 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 Haynesville Shale.

Chesapeake Energy has 530,000 net acres in the Haynesville Shale, with proved reserves of 2.5 Tcfe (using the 10 year average strip pricing). Current daily production from the Haynesville Shale is 510 million cubic feet equivalent per day, and the company has 36 rigs operating in the play.

Chesapeake Energy said that the company would operate an average of 35 rigs in the Haynesville Shale in 2010, and drill a total of 170 net wells. Three recent well completions in the Haynesville Shale were:

The Fuller 8-13-13 H-1, located in DeSoto Parish, Louisiana, produced at a peak 24-hour production rate of 23.7 million cubic feet of natural gas per day.

The Sloan 4-13-13 H-1, located in DeSoto Parish, Louisiana, produced at a peak 24-hour production rate of 21.9 million cubic feet of natural gas per day.

The Pankey 23-14N-15W H-1, located in DeSoto Parish, Louisiana, produced at a peak 24-hour production rate of 18.9 million cubic feet of natural gas per day.

Chesapeake Energy Reports Three Haynesville Shale Completions

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

Sloan 4-12-13 H-1 – DeSoto Parish – 23.4 million cubic feet

Johnson 21-13-13 H-1 – DeSoto Parish – 18.5 million cubic feet

Caspaiana 14-15-12 H-1 – Caddo Parish - 18.4 million cubic feet

In 2010, Chesapeake Energy plans on increasing its rig count to an average of 41, and drill 200 net wells in the Haynesville Shale.

Chesapeake Energy - Haynesville Shale Summary

Chesapeake Energy Corporation (CHK) released an update and a summary of its activity in the Haynesville Shale.

Acreage – 535,000 acres

Proved Reserves – 1.96 trillion cubic feet equivalent

Daily Production – 372 million cubic feet equivalent per day

Estimated Ultimate Recovery – 6.5 billion cubic feet equivalent

Rig Count – 38 rigs

Chesapeake Energy estimates that its Haynesville Shale production will reach 640 million net cubic feet equivalent per day by the end of 2010, and 810 million cubic feet equivalent per day by the end of 2011.