Chesapeake Energy Reports 3rd Quarter Results
Utica Shale (Eastern Ohio): Utica net production averaged approximately 85.5 mboe per day (154.4 gross operated mboe per day) during the 2014 third quarter, an increase of 27% sequentially. Chesapeake anticipates incremental compression capacity of 150 mmcfe per day gross on the Cardinal pipeline in the 2014 fourth quarter. The company continues to improve its capital efficiencies within the Utica. Average completed well costs (as measured from January through July) are approximately $6.5 million with an average completed lateral length of 6,300 feet and 32 frac stages, compared to an average of $6.7 million in 2013 with an average completed lateral length of 5,150 feet and 17 frac stages. The average of completed well costs is already significantly below the year-end 2014 target of $7.1 million per well despite incurring additional capital reinvestment in completions. Wells in various stages of completion or waiting on pipeline in the area decreased to 172 as of September 30, 2014, compared to 195 at December 31, 2013. The average peak production rate of the 77 wells that commenced first production in the Utica during the 2014 third quarter was approximately 1,175 boe per day.Read the whole release here.
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