In an investor presentation dated June, 2012, Chesapeake Energy gave an overview of their success in the Utica Shale. Chesapeake Energy (partnered with French energy company Total,) has leased over 1.3 million acres in the Utica Shale play. To date the company has drilled 59 wells in the play. Of those, 9 are producing, 15 are being completed, 15 are waiting on completion and 20 are waiting on pipelines to be constructed. Of the 9 producing wells, 8 are in the wet gas window of the Utica Shale – Point Pleasant play. Chesapeake’s best well, the Buell #8H, in Harrison county Ohio, had an initial production or IP rate of greater than 3,000 BOE/day. (BOE stands for “barrels of oil equivalent, and includes gas natural gas liquids and crude oil.) More than half of the production from the Beull #8H was from liquids. The Buell #8H well is currently producing 1,030 boe per day and Chesapeake Energy expects an estimated ultimate recovery or EUR of 575,000 bbl’s of liquids and 13 bcf of natural gas. Other Chesapeake Utica shale wells of note were the Shaw #5H in Carroll county, with an IP of 770 bbl/day, the Burgett #8H, with 720 bbl/day, and the Coniglio #6H, with 290 bbl/day. Chesapeake plans on averaging 13 rigs running in 2012, and bumping that up to 22 rigs in 2013.
Most of the Chesapeake – Total joint venture acreage is in Ohio. (Indicated by purple outline on map.)
In 2011 Chesapeake Energy began to shift capex from dry gas plays to liquids – rich ones, such as the Eagle Ford shale and Utica shale. In the second half of 2012, Chesapeake will average 115 rigs drilling in liquids – rich plays across the country. In 2013 the company plans to spend 92% of capex on liquids – rich plays, compared to 2008 when that number was only 13%. The company has been the standard bearer for natural gas, but lately it’s looking more and more like an oil company. In the Eagle Ford Shale, Chesapeake takes a back seat to #1 EOG Resources, but in the Utica Shale they are leading the way with the largest leasehold area.