Wednesday, August 5, 2009

Chesapeake Bracing for Haynesville's "Big One"

Okay, enough with the fart jokes. But in reality, Chesapeake is expecting a hurricane out of Haynesville's "rear:"

Chesapeake Energy Corp. expects to hike its Haynesville shale gas output to a gross operated 575 MMcfe/d at the end of 2009 and as much as 1.025 bcfe/d by the end of 2010. The production rate in late July was 175 MMcfe/d net and 285 MMcfe/d gross operated. The company plans to average 33 operated rigs in the second half of 2009 and 36 rigs in 2010 compared with 29 currently active. Chesapeake has added 40,000 net acres since Mar. 31, 2009, and is now the play’s largest leasehold owner at 510,000 net acres. Plains Exploration & Production Co., Houston, Chesapeake’s 20% joint venture partner, owns another 113,000 net acres.

[...]

Chesapeake recovered 35% of its $4.7 billion Haynesville leasehold investment with the sale of a 20% interest to Plains, bringing Chesapeake’s net investment in Haynesville leasehold to $6,000/net acre.

- Brewskie

3 comments:

  1. The TOD crowd is still nursing fantasies that natural gas will start to run out, when all these wells cut back suddenly from first-year flow rates. Hooo-boy.
    In Rigzone today is an article that the industry knows that $4mcf may be the new norm, unless it is lower, and maybe a lot lower.
    Add CNG to PHEV, and what have you got?
    No more OPEC.
    B Cole

    ReplyDelete
  2. Benjamin "the troublemaker" Cole,

    I glimpsed over at Carpe Diem yesterday and saw you were making a ruckus. Lol! I shoulda just slammed several shots of Tequila, said "screw work," and helped you out=)

    Yeah... I saw the same Rigzone article, too.

    ReplyDelete
  3. Yeah, I should probably stop fooling around over there. The more focussed blogs, such as yours and R squared, are where one actually learns something. The general "we are liberals," or "we are conservatives" blogs just degenerate into..well, generalities.
    You run a great blog.
    B Cole

    ReplyDelete