The Word is OUT!!! Chesapeake tells ALL!!!

Here is part of of an article out today at 4:43 pm ET OKLAHOMA CITY & HOUSTON--(BUSINESS WIRE)--

“We have achieved outstanding drilling results in the play to date and believe Chesapeake’s expertise in developing shale plays provides us with an opportunity to see even better results in the months and years ahead. The initial production rates on the eight horizontal wells we have completed have ranged from 5 to 15 million cubic feet of natural gas equivalent (mmcfe) per day on restricted chokes at flowing casing pressures of up to 6,500 PSI. We believe these truly exceptional wells would have been capable of even greater initial production rates if produced on open chokes as Barnett and Fayetteville Shale wells commonly are produced. These production rates and flowing casing pressures, along with our geoscientific and petrophysical analysis of over 70 wells that have penetrated the Haynesville Shale to date, give us confidence that our mid-point EUR estimate of 6.5 bcfe for the Core Area of the Haynesville Shale is currently appropriate. This compares quite favorably to our Barnett Shale Core Area EUR average range of 2.5-3.0 bcfe and our Fayetteville Shale Core Area average range of 2.2-2.8 bcfe. To date, our costs to drill and complete horizontal Haynesville Shale wells have averaged approximately $6.5 million and we anticipate that we will be able to reduce these costs by at least 10% once full-scale development of the play is underway based on other shale play experience.

We have waited for this news for a long time!!!

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Permalink Reply by nisie, not a happy camper landowner on July 1, 2008 at 10:14
Can you provide link?
Permalink Reply by lanadan Ds3 on July 1, 2008 at 10:23
Permalink Reply by lanadan Ds3 on July 1, 2008 at 10:34
We may get even more information by listening in on this conference call tomorrow!

Conference Call Information

A jointly hosted conference call by Chesapeake and PXP management teams to discuss this release has been scheduled for tomorrow, July 2, 2008, at 9:00 a.m. EDT. The telephone number to access the conference call is 913-312-0959 or toll-free

888-254-2827. The passcode for the call is 2424219. We encourage those who would like to participate in the call to dial the access number between 8:50 and 9:00 a.m. EDT. The conference call will also be webcast live on the Internet and can be accessed by going to Chesapeake’s website at www.chk.com and selecting the “News & Events” section or PXP’s website at www.pxp.com and selecting “Presentations / Webcasts” in the Investor Relations section.
Permalink Reply by nisie, not a happy camper landowner on July 1, 2008 at 10:22
http://www.businesswire.com/portal/site/home/template.PAGE/news/mor...*A1214910000000*B1214972267000*DgroupByDate*G2*J1*N1000837&javax.portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cachetoken
Permalink Reply by Shaq on July 1, 2008 at 10:40
By my calculations:

$1.65B cash + $1.65B future drilling dollars = $3.3B / 110,000ac = $30,000/ac

or

$1.65B cash + $1.65B future drilling dollars * 0.82 (2 yr mid-point at 10% discount rate) / 110,000/ac = $27,000/ac


Seems like that will place substantial upward pressure on lease bonus payments from here on out.
Permalink Reply by DrWAVeSport Cd1 on July 1, 2008 at 11:03
JP Morgan hasn't been too far off from their (earlier this year) valuation of $40K+ for bonus moneys in the Haynesville Shale. Note: Not SALE of acreage...LEASE Moneys of acreage!

GO! GO! GO! HK and CHK and XTO and ENCANA and PXP!

DrWAVeSport 7/1/2008
Permalink Reply by Snake Stewart on July 1, 2008 at 11:27
Tahiti ? Caymans? Maybe the Outback mate ?
Permalink Reply by shelby on July 2, 2008 at 8:16
snakestewart,
shrimp on the barbi tonight mate.
shelby
Permalink Reply by dreamcatcher on July 1, 2008 at 11:55
Have tried to find link with no success, but Floyd Wilson CEO Petrohawk said in interview couple of weeks ago (probably still outing Cheasapeake again to hit their lease money). That in 3 yrs, he sees leases at $40,000 to $50,000 per acre . Not sure if this has been posted, but nice info and maps from Petrohawk.
http://library.corporate-ir.net/library/10/105/105858/items/296595/...
Permalink Reply by RJ on July 1, 2008 at 14:52
FORTRESS MANAGEMENT in Shreveport ARE YOU READING THIS??
Permalink Reply by Mack on July 1, 2008 at 10:43
"...establishes a $16.5 billion valuation of our Haynesville Shale leasehold..." THAT'S BILLION.
Permalink Reply by Keith Mauck (Site Publisher) on July 1, 2008 at 11:14
Any idea where these wells are? Shale Geo where are you?

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