Chesapeake Hits Record Production

OK... it's not a Haynesville well but it's a "doozie", none the less!

 

Integrated energy company Chesapeake Energy Corporation (NYSE:CHK) announced that its Anadarko Basin’s Buffalo Creek 1-17 well has generated a record gross production of more than 60 billion cubic feet of natural gas.

The company, holding an 82.6% working interest and a 65.8% net revenue interest, began operating the well in May 2002.

The well, located in Beckham County, was drilled to a total depth of approximately 21,000 feet at the Cunningham Sand of the Deep Springer formation. During the first two years of operation, the well recorded an average of about 41 million cubic feet of natural gas per day, while it is still producing about 8 million cubic feet of gas a day.

Chesapeake incurred total spending of $8.5 million to drill and complete the well, while total gross revenue was approximately $320 million, of which approximately $65 million was paid to royalty owners and approximately $15 million advanced as state severance tax.

Management stated that Buffalo Creek 1-17 is only the sixth well to hit such a record output level. The company currently holds operational interest in four of six such natural gas wells ever drilled in Oklahoma.

 

http://www.dailymarkets.com/stock/2011/07/19/chesapeake-hits-record...

Tags: Chesapeake, Oklahoma, record gas well

Views: 175

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Replies to This Discussion

Permalink Reply by Joe Aldridge on July 19, 2011 at 13:40

JF,

Do you or anyone know what unit size the well is in? Just curious. 

Permalink Reply by jffree1 on July 19, 2011 at 14:48
No, I don't have any idea, Joe.  I guess one of us should learn how to research OK wells...
Permalink Reply by Shale Wizard on July 21, 2011 at 2:44
Unfortunately, OK does not have an asset like LA does with SONRIS.  All information in Oklahoma is handled directly through the Oklahoma Corporation Commission (OCC).  I worked OK for years before moving to Petrohawk and working LA.  the units are typically 640 acres.  Beckham County has been an area of interest for about 4 years now.  Small players such as Stephens Production Company moved in and acquired acreage and may actually be doing some drilling in the area, but last I heard, Chesapeake was the big operator there with Newfield and XTO also looking to operate. 
Permalink Reply by jffree1 on July 21, 2011 at 2:56

Thanks, SW!  I took a look at the OCC system and couldn't get my system configured to use it without fiddling with and tweaking a bunch of "stuff" so I gave it up.  But you answered the "unit size" question so, thanks, again.

 

Permalink Reply by Joe Aldridge on July 21, 2011 at 6:52
All I can say is WOW........
Permalink Reply by Scott on July 21, 2011 at 10:03
The unit size for that well is 640 acres.
Permalink Reply by Curtis on July 21, 2011 at 10:42
This well was drilled 7 miles north of my home-in fact I was working on a rig within site of this well while it was being drilled. There were many problems with drilling this well-if I recall correctly they had to skid the rig once. When this well 1st came online it was making 80 MMCF Day! word was Chesapeake tried to increase the tubing size to increase production and severly hurt the well and it would never do 80 million a day or anything close afterwords. @ other wells drilled withing a stones throw of this well were just average producers for the area...strange how that worked out. Anyway it was a monster well for sure!
Permalink Reply by Roy on July 21, 2011 at 15:07
It is good they did get a nice well out of the drill. Maybe they will focus more on paying mineral owners instead of making excuses. Seems several states now view them as hoarders that tie leases up. And then ask to extend closings and in most cases leave owners holding the bag. Even the most recent investor meeting the CEO was shown as being over paid for poor performance. Many compare the company to the next Enron since they would rather litigate rather than do the right thing for owners. This has been proven in Michigan,North Dakota and now a federal lawsuit in Texas.

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