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 Two Utica Shale Completions

Chesapeake Energy (CHK) has an active development program in the Utica Shale and disclosed an update on recent operations here.  The company is currently operating eight rigs in the play, with six working in the wet gas window and one each in the dry gas and oil areas.

Chesapeake Energy’s long term plan in the Utica Shale is to ramp up to 20 rigs by the end of 2012. The company has drilled 42 wells to date and has seven wells on production, and 35 waiting on completion or pipeline.

Chesapeake Energy reported the production on two recent Utica Shale wells.  The Shaw 20-14-5H and Burgett #7-15-6 8H wells produced at peak average production rate of more than 700 barrels of oil and 3 million cubic feet per day of natural gas. Both wells are located in Carroll County, Ohio.