Quick Summary of 2012 4th Quarter For 5 Major Utica Shale Players

From Seeking Alpha:
This is our sixth Utica Shale compilation conference call article. We continue to believe that conference calls are an invaluable source of information and often give "color" that cannot be obtained elsewhere. Therefore, we are once again sharing our notes relating to the Utica Shale from the recently concluded fourth quarter conference calls of Chesapeake Energy Corporation (CHK), EV Energy Partners LP (EVEP), Gulfport Energy Corporation (GPOR), PDC Energy, Inc. (PDCE) and Rex Energy Corporation (REXX). To that end…
Chesapeake Energy Corporation
Chesapeake's entire conference call may be accessed HERE. Chesapeake reminded us that it has captured the industry's largest acreage position in the Utica and announced that to date it has drilled 184 wells of which 45 are currently producing. Chesapeake continues to focus drilling efforts in the wet gas window inside its joint venture with Total Chesapeake is projecting average EURs per well of 5-10 Bcfe depending on the area and phase of the play targeted. Production last year was fairly minimal due to infrastructure constraints. This year Chesapeake anticipates a significant ramp reaching an exit rate of perhaps 55,000 BOEs per day (net to Chesapeake). Spud to spud times- cycle times have decreased 37% year over year and are now down to 22 days. Average drilling and completion costs are down 27% to around $7.5 million per well (with a lateral around 5,000 feet). Chesapeake highlighted a Carroll County well (the Coe 1H) that it recently drilled with a 24 hour IP of over 2,200 BOE per day with a liquids cut of 33%. Despite several questions, the company would not discuss oil vs. gas vs. NGL percentages or depletion rates saying it was just too early to tell. Chesapeake is attempting to drill as close to infrastructure through year end as it can. The remaining drilling carry from Total was approximately $1.15 billion at year end 2012 and it is anticipated that it will be maxed out by year end 2014. Chesapeake pronounced that so far it was very, very pleased with the Utica play.
Click here to read the rundowns for Gulfport Energy, EV Energy Partners, Rex Energy, and PDC Energy.

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