Utica Shale

Chesapeake Energy Updates Utica Shale Operations

Chesapeake Energy (CHK) disclosed an operational update on its activity in Ohio where the company has a large development program targeting the Utica Shale.  The company is operating 12 rigs here and estimates that it will have 16 rigs by the end of 2012 on its 1.3 million net acres.  

Chesapeake Energy has drilled a total of 87 wells to date into the Utica Shale and has 28 wells waiting on completion or on pipeline.  The company signed a joint venture with Total (NYSE:TOT) to help with development here and has $1.35 billion left on the original drilling carry.  Chesapeake Energy expects the remainder of the funds to be used by the end of 2014.

Chesapeake Energy - Utica Shale Summary

Chesapeake Energy (CHK) is the largest operator in the Utica Shale and has 1.3 million acres under lease.  The company is operating 10 rigs and plans to average 13 rigs in 2012 and 22 rigs in 2013.

Chesapeake Energy has drilled 59 wells into the Utica Shale:

Producing – 9 wells

Undergoing completion – 15 wells

Waiting for completion – 15 wells

Waiting on Pipeline – 20 wells

Chesapeake Energy’s most productive Utica Shale well is the Buell 8H well in Harrison County, Ohio, which produced at a peak rate above 3,000 barrels of oil equivalent (BOE) per day in September 2011.  The company estimates that the Buell 8H well will have an estimated ultimate recovery (EUR) of 575,000 barrels of liquids and 13 bcf of natural gas.

Chesapeake Energy Reports Three Utica Shale Wells

Chesapeake Energy (CHK) latest Utica Shale results were released back in May 2012 and I neglected to post them here.  These three wells were all drilled and completed in Carroll County, Ohio:

Shaw 5H – 1,440 barrels of oil equivalent (BOE) per day, composed of 770 barrels of oil, 180 barrels of natural gas liquids and 2.9 million cubic feet of natural gas per day.

Burgett 8H – 1,210 BOE per day, composed of 720 barrels of oil, 140 barrels of natural gas liquids and 2.1 million cubic feet of natural gas per day.

Coniglio 6H – flow test of 1,125 BOE per day, composed of 290 barrels of oil and 5 million cubic feet of wet natural gas per day.