Chesapeake Energy (CHK) has built a sizable acreage position in almost all the major shale plays in North America. This is a summary of its position in the Marcellus Shale as of 3/31/2009.
Acreage - 1,300,000
Drilling Spacing - 80
Drilling Locations - 4100
Proved Reserves - 74 Bcfe
Current Daily Production - 30 mmcfe
Chesapeake Energy expects production to reach 100 mmcfe by the end of 2009. The company entered into a joint venture with StatoilHydro ASA (STO) with its properties in the Marcellus Shale. StatoilHydro ASA has a 32.5% interest in the acreage, and must fund 75% of the capital expenditures through 2012 up to a specified amount.
Chesapeake Energy plans on spending $350 million in gross capital expenditures in 2009, and will average 15 operated rigs in the Marcellus Shale.
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