Chesapeake Energy Corporation (CHK) issued an operational update for the second quarter of 2010, and released additional data on its activities in the Marcellus Shale.
Chesapeake Energy has 1.55 million net acres in the Marcellus Shale, with proved reserves of 460 Bcfe (using the 10 year average strip pricing). The company recently raised its estimated ultimate recovery (EUR) per well from 4.2 Bcfe to 5.2 Bcfe.
Chesapeake Energy reported average daily net production from the Marcellus Shale of 105 million cubic feet equivalent per day in the second quarter of 2010. This was a 65% sequential increase from the first quarter of 2010, and a 250% increase from the same quarter of 2009.
In July 2010, Chesapeake Energy reported average daily production of 130 million cubic feet equivalent per day. The company will produce another 60 million cubic feet equivalent per day from its Marcellus Shale properties in West Virginia once it completes infrastructure in the area.
Chesapeake Energy currently has 26 rigs operating in the play, and will operate an average of 28 rigs in the Marcellus Shale in 2010, to drill a total of 150 net wells.
The company reported three recent well completions in the Marcellus Shale:
The Mowry 1-H, located in Bradford County, Pennsylvania, produced at a peak 24-hour production rate of 9.9 million cubic feet of natural gas per day.
The White 2H, located in Susquehanna County, Pennsylvania, produced at a peak 24-hour production rate of 9 million cubic feet of natural gas per day.
The Przybyszewski 4H, located in Susquehanna County, Pennsylvania, produced at a peak 24-hour production rate of 9.7 million cubic feet of natural gas per day.