Friday, December 14, 2012

Chesapeake Admits Miscalculation on Utica Shale Fairway

Chesapeake Energy is the big player in the Utica shale after aggressively snatching up land in Carroll and Columbiana Counties in an attempt to lock up as much of what they identified as the main fairway of the shale play as possible.

New projections and early production results indicate that the sweet spot in the Utica shale is not necessarily what Chesapeake anticipated, and an analyst says that the company has acknowledged this.

From the Akron Beacon Journal:
Chesapeake Energy's management "acknowledges the company misjudged the emerging fairway of the Utica shale," he wrote.
That came from the Oklahoma-based energy company in what Rezvan called a competitor conference this week.
The comments by Chesapeake Energy, the No. 1 player in Ohio's Utica shale, is backed up by drilling results, he said in a Wednesday note to investors.
In fact, the results from wells to the south of Chesapeake's wells are actually better, especially those of Gulfport Energy Corp. in Ohio's Harrison and Belmont counties, Rezvan said.
Gulfport has the top four wells in Ohio for preliminary production as reported by the companies.
It appears that the play in the Guernsey, Belmont, Noble and Monroe counties may be better than what Chesapeake Energy has found in Carroll and Columbiana counties, he said.
Read the whole article here. 

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