CHESAPEAKE SEES BOSSIER LAGGING HAYNESVILLE - Wed. Oct. 14, 2009 10:48 am EDT

UPDATE 1-Chesapeake sees Bossier lagging Haynesville
Wed Oct 14, 2009 10:48am EDT

HOUSTON, Oct 14 (Reuters) - Very early results from Chesapeake Energy Corp's (CHK.N: Quote, Profile, Research, Stock Buzz) Bossier shale play indicate that there is a little less natural gas in place than in its high-performing Haynesville shale acreage, an executive with the company said on Wednesday.

"It's not going to be quite as robust," John Sharp, a Chesapeake executive, told investors in comments broadcast on the Internet.

Investors had been anxiously waiting for data on the initial production rate from a Chesapeake well drilled in August in the Bossier. Chesapeake said the well had started flowing at a rate of 9.4 million cubic feet equivalent per day, below average rates seen in the Haynesville shale.

Even so, Sharp told investors that it is very early in the Bossier's development and said the company has high hopes for the play.

The Bossier and Haynesville shales are both located in east Texas and northern Louisiana.

Shares of Chesapeake fell 79 cents, or 2.7 percent, to $28.67 in morning trade on the New York Stock Exchange. That compares with a small gain in the American Stock Exchange index of natural gas companies .XNG. (Reporting by Anna Driver, editing by Gerald E. McCormick)

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Permalink Reply by DJG on October 14, 2009 at 4:58
Thanks Skip for this report. Does anyone have any information on which well in particular that Chesapeake is basing this Bossier info on? Sure it's not a 20mil barn burner, but still at 9.4 mil I wouldn't turn down the mailbox money from that well.

Also there have been 4 new E. Texas wells anounced in the last 2 weeks that have all been IP'd at over 15mil so I am wondering how much truth is in Chesapeake's assessment that the Bossier play is "not quite as robust" and how much is investor spin as to why CHK doesn't have as much property leased in E.Texas as their competitors?

Just sayin'.....
Permalink Reply by DJG on October 14, 2009 at 6:02
OK, now that I have seen CHK's investor report regarding this Bossier well, I can see that it pertains to a LA well in SW Desoto Parish and not 1 of the two wells they are currently near completion on in Shelby Co. Texas.

The formation they tapped is directly above the Haynesville in LA so that 9.4mil well is going to be a pretty nice bit of Lagnaippe in addition to all of the potential Haynesville production in that section.
Permalink Reply by Catfish on October 14, 2009 at 4:59
Wow only 9.4, I'd be happy with a couple of those along with a HA well or 2 in my section.
Permalink Reply by Skip Peel - Mineral Consultant on October 14, 2009 at 5:34
Guys. Remember that the Bossier in NW. LA. is a different formation from the Bossier (Haynesville) in TX. A knowledgeable member has posted several times about the CHK wells in the Logansport Field. I don't know the location of the well referenced in the report but it could be in or near the Logansport Field. I suggest that you look for some of those prior discussions I think you will find them quite interesting. The well in the report is producing from the Bossier Shale immediately above the Haynesville Shale in NW. LA. And a 9 MMcfd Bossier well and a good HA well in the same section would make a lot of land/mineral owners very happy.
Permalink Reply by DJG on October 14, 2009 at 5:29
Found the pdf report from this investor's press release on CHK's website:

http://media.corporate-ir.net/media_files/nys/CHK/presentations/200...

The 9.4mil Bossier test well is in Southwest Desoto Parish - Blackstone 26 H-1.
Permalink Reply by Skip Peel - Mineral Consultant on October 14, 2009 at 5:35
Good work, D. Thanks. You're quick. And, Bingo! Logansport Field.
Permalink Reply by DJG on October 14, 2009 at 5:56
Check out page 40 of that CHK pdf presentation. Those folks in SW Desoto Parrish would be looking pretty good to get one of those "multi-lateral stacked Superpads" on their minerals to potential 16 wells in the unit.

I do see, however, that CHK also has the disclaimer in their investor report stating that they do not have any "current plans" to drill stacked horizontals into both the Haynesville and Bossier formations due to "too much operational risk".

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