Peak performance from Chesapeake Energy Corporation (NYSE:CHK)’s Ohio Utica shale
Chesapeake Energy Corporation (NYSE:CHK) is satisfied with the fact that the Ohio Utica Shale is being developed by it. CHK’s Chief Executive Officer, Doug Lawler said that he was very encouraged by what he saw in Utica and that it was outstanding. He said that the area is an exciting one for the company. In a 2013 Q2 report to financial analysts he said that going forward, the company sees Uitca to be an extremely strong asset.
He said that CHK intends on focusing on the top producing area in this shale. They will be exploring petroleum, natural gas as well as liquids such as butane, ethane and propane. He went on to state that new multi-well pads will be developed in the region. These wells will be drilled from the same drilling area or pad. This will reduce drilling costs and increase production.
The company is the highest player in the Utica Shale in Ohio. They are expecting production to rise sharply towards the end of 2013. This week, a processing plant was started up in Columbia County and a liquids-separation facility has been set up in Harrison Country. This complex services the company’s drilled wells that are located in Ohio, via a pipeline. Utica East Ohio is co-owned by EV Energy Partners, Access Midstream and M3 own and operate it. There are some more processing facilities and pipelines under construction in Ohio.
Right through 30 June, Chesapeake Energy Corporation (NYSE:CHK) has drilled 321 different wells in Ohio’s Utica shale, northern West Virginia and Pennsylvania. This is inclusive of 106 producing wells, 122 wells in varying stages of completion and 93 are awaiting pipeline construction. The net production from the Ohio Utica shale was an average of 85M cubic ft of natural gas equivalents /day for the Q2.