Chesapeake Energy bills itself as “America’s Champion of Natural Gas” and is one of the most active independent operators drilling in the United States. The Chesapeake – CNOOC joint venture announced in October 2010 brought the Chinese into one of America’s hottest plays. CNOOC paid Chesapeake $2.16 billion or $10,800 per acre for a 33% interest in 600,000 net acres at the time of the deal. CNOOC also has an option to participate with a 33.3% share in additional acreage and the development of midstream infrastructure with Chesapeake. Chesapeake and CNOOC target the Eagle Ford Shale play’s oil window at depths of 5,000-11,000 ft with horizontal wells that have an additional 5,000-8,000 ft average lateral length.
Chesapeake is the most active company drilling wells in many of these areas and controls much of its own mid-stream, compression, drilling and oilfield service assets. Chesapeake came onto the scene in the Eagle Ford as the company began leasing acreage in the oil window in August 2009 and accumulated over 600,000 net acres.
The company’s stock is traded on the NYSE under the symbol CHK. Chesapeake’s headquarters is in Oklahoma City, OK. In South Texas, Chesapeake has field offices in Carrizo Springs, San Antonio, Victoria, and Zapata.
Chesapeake Energy develops onshore U.S. natural gas and oil reserves in the Barnett Shale (North Texas), Bossier (Louisiana), Eagle Ford Shale and Pearsall Shale (South Texas), Haynesville Shale (East Texas and Louisiana), Marcellus Shale (Appalachian Region of Ohio, Pennsylvania, and West Virginia), and Niobrara Shale (Colorado and Wyoming).
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Counties Where Chesapeake is Active
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- Atascosa County
- Dimmit County
- Duval County
- Frio County
- Goliad County
- LaSalle County
- McMullen County
- Washington County
- Webb County
- Zavala County
Chesapeake Eagle Ford Shale Quarterly Commentary
Press Release
November 3, 2011
Chesapeake has four plays that resulte in more than 900 mmboe back to the company. “They would be the Eagle Ford, where we own 460,000 net acres; the Mississippi Lime play in Northern Oklahoma and Southern Kansas, where we own 1.4 million net acres; the Cleveland Tonkawa play in the Anadarko Basin, where we own 750,000 net acres; and now the Utica, where we own 1.35 million net acres after our JV sale.
Collectively, the potential of these plays, net to Chesapeake shareholders, is over 4.3 billion barrels of oil equivalent. And by the way, our net leasehold cost in those plays is now only $100 per net acre.
For example, in the Eagle Ford, we’ve only lately have had kind of a surge of production there because we were waiting on a lot of infrastructure. We just, I think, did a pretty good job of modeling for that. And you don’t see us miss our numbers and then blame unforeseen circumstances. We plan for those and take it in stride. And, again, through our balanced and diversified asset base, we can have issues in one area and not affect our overall performance.”
Press Release
July 29, 2011
“…Yes, I think when you look at the Eagle Ford, you see the best rates of return in the wet gas window. It’s got a lot of energy and got a lot of hydrocarbon stuck — stacked into place.”
“Eagle Ford Shale. First Chesapeake production was in 2010. Our current gross operated production is 20,000 barrels of oil equivalent, making us the fourth largest producer in the play to date…”
Source: Chesapeake Energy Corporation
Press Release
May 3, 2011
“We still have — and I’ll let Steve jump in here too. But we have lots of logistics issues in the Eagle Ford where we are limited by the amount of oil that we can produce. And so we have a whole lot of oil shut in, and maybe Steve has more.”
“And there is a lot of bottlenecks associated with trucking, part of it was also completion prohibitions during the dear hunting season over the winter. And so we were able to get some oils drilled but a lot didn’t get completed until the spring. So we should have a very good quarter in the second quarter.”
