Chesapeake Energy Corporation (CHK) issued an operational update for the first quarter of 2010. The company provided extensive commentary on its activities in the Marcellus Shale.
Chesapeake Energy has 1.5 million net acres in the Marcellus Shale, with proved reserves of 351 Bcfe (using the 10 year average strip pricing). Current daily production from the Marcellus Shale is 100 million cubic feet equivalent per day, and the company has 24 rigs operating in the play.
Chesapeake Energy said that the company would operate an average of 31 rigs in the Marcellus Shale in 2010, and drill a total of 170 net wells. Three recent well completions in the Marcellus Shale were:
The James Barrett 2H, located in Bradford County, Pennsylvania, produced at a peak 24-hour production rate of 12.7 million cubic feet of natural gas per day.
The James Barrett 1H, located in Bradford County, Pennsylvania, produced at a peak 24-hour production rate of 11.8 million cubic feet of natural gas per day.
The Strom 1H, located in Bradford County, Pennsylvania, produced at a peak 24-hour production rate of 8.2 million cubic feet of natural gas per day.
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