Chesapeake Produces Company Record at Utica
The Shale Deposit Doesn't Disappoint
On Wednesday, the energy sector suffered losses after a dip in the Dow Jones.
Oil futures dropped 2.8%, Market Watch reports, and both the NYSE Arca Oil Index and the Philadelphia Oil Service Index fell.
But pulling out ahead was Chesapeake Energy (NYSE: CHK), which, according to Forbes, rose 3.7% this morning to $28.70.
This unexpected rise followed Chesapeake’s report of success in the Utica Shale deposit in Ohio and Pennsylvania – record-breaking success.
As Forbes reports, Chesapeake has been producing an average of 3.45 billion cubic feet of natural gas. This is the first official report of the possibilities of this deposit.
Chesapeake has announced that they anticipate production levels at 150,000 barrels a day of petroleum by the end of 2012 and 250,000 barrels a day by 2015, the article reported.
It put this in relation to Chesapeake’s 2009 average, which was 32,000 barrels per day.
And each of the wells in recorded production has thus far extracted over 1,000 barrels of liquids per day.
Forbes gave some specifics on these wells. As the article reported, the Buell well in Harrison County was, at peak, producing 3,010 barrels per day.
Mangun, in Carroll County, Ohio, was able to produce 1,530 barrels per day.
Neider, also located in Carroll County, produced 1,615 barrels at peak production.
And the Thompson well in Pennsylvania produced 6.4 million cubic feet.
Chesapeake currently has 12 wells in the Utica Shale, and the company holds permits to 1.25 million acres.
They predicted that this land and access to the shale could be worth around $20 billion. And the recorded output seems to be right on target.
That’s all for now,
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