The Oklahoma-based energy giant said Wednesday that its intends to scale back its drilling in the Utica Shale in the coming months, as profits drop and production continues to climb.
Chesapeake will lower the number of drilling rigs in Ohio from five to two by the middle of the third quarter and will reduce the number of Ohio crews that hydraulically fracture, or frack, the rock from four to 2.5 for the rest of 2015, the company said in an earnings call with analysts and the media.
Similar cuts are being made elsewhere, with some of the biggest reductions coming in the Eagle Ford Shale in Texas.
The company needs to maintain two drilling rigs in order to hold onto its leased acreage in eastern Ohio.
Chesapeake, the No. 1 player in the Utica Shale and No. 2 producer of natural gas in the United States, said it is has been very pleased with recent natural gas results in Columbiana County.
Three wells recently completed there show significantly more potential than nine earlier-drilled wells, spokesman Chris Doyle said.
The company is seeing a 50 percent improvement in production with the new wells, he said, and the company could expand its core area beyond neighboring Carroll County into Columbiana County.Read more by clicking here.
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