Here is what Chesapeake Energy Corp. has to report today on the Utica and Marcellus shales:
Utica Shale (eastern Ohio, Pennsylvania, West Virginia): Chesapeake continues to focus on developing the core wet gas window of the Utica Shale in eastern Ohio, a play in which the company holds the industry’s largest position, approximately 1.0 million net acres of leasehold. As of December 31, 2012, Chesapeake has drilled a total of 184 wells in the Utica, which includes 45 producing wells, 47 additional wells waiting on pipeline connection and 92 wells in various stages of completion. Chesapeake is currently operating 14 rigs in the Utica and plans to average 14 operated rigs during 2013. Production growth from the Utica is expected to accelerate during 2013 when two new third-party natural gas processing complexes will enable the company to turn a large portion of its well inventory to sales.
Three notable wells completed by Chesapeake in the Utica during the 2012 fourth quarter are as follows:
As of December 31, 2012, the company’s remaining drilling and completion carry from Total E&P USA, Inc. was approximately $1.15 billion. Chesapeake anticipates using 100% of the remaining carry by year-end 2014, and the carry will pay for 60% of Chesapeake’s drilling and completion costs during that time.
Marcellus Shale (Pennsylvania, West Virginia): With approximately 1.8 million net acres, Chesapeake is the industry’s largest leasehold owner in the Marcellus Shale, which spans from northern West Virginia across much of Pennsylvania into southern New York.
During the 2012 fourth quarter, Chesapeake’s average daily net production in the northern dry gas portion of the Marcellus was 645 million cubic feet of natural gas equivalent (mmcfe) per day (1,485 gross operated mmcfe per day), an increase of 135% year over year and 19% sequentially. Chesapeake has reduced its operated rig count to five rigs in the northern dry gas portion of the Marcellus and anticipates maintaining that level of activity for the remainder of 2013.
Three notable wells completed by Chesapeake in the northern dry gas portion of the Marcellus during the 2012 fourth quarter are as follows:
During the 2012 fourth quarter, Chesapeake’s average daily net production in the southern wet gas portion of the play was approximately 155 mmcfe per day (260 gross operated mmcfe per day). Management expects production from the southern Marcellus will remain relatively flat until the ATEX pipeline, which will carry processed ethane to the Gulf Coast, comes online in late 2013. Chesapeake is currently drilling with three operated rigs in the southern wet gas portion of the Marcellus and anticipates maintaining that level of activity for the remainder of 2013.
Three notable wells completed by Chesapeake in the southern wet gas portion of the Marcellus during the 2012 fourth quarter are as follows:
The company is in the process of selling various non-core Marcellus acreage.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.