2015-11-10



Chesapeake Q3 2015

Chesapeake Energy Corporation reported its 2015 third quarter results, including projected activity for the Eagle Ford.

Related: Chesapeake Cuts 740 Jobs

In an earnings call last week, Chesapeake reported a net loss of $4.695 billion in the third quarter in contrast to a 3% year over year production increase. The company highlighted their focus on organizational and operational initiatives to face the extended low commodity price environment.

President and CEO Robert Douglas Lawler commented, “We continue to focus on improving completion efficiency as a value differentiator at Chesapeake as measured through finding and development cost. We are drilling faster and cheaper, drilling longer laterals and enhancing our completion techniques to drive further value from each investment.”

For Chesapeake’s Eagle Ford Shale operations, net production averaged approximately 108 thousand barrels of oil equivalent (mboe) per day, an increase of 3% sequentially. Other Eage Ford highlights include:

Average completed well costs to date in 2015 are $5.3 million, compared to $5.9 million for 2014.

Average completed lateral length of 6,000 feet, compared to 5,850 feet for 2014

Averaged three rigs in the 2015 third quarter, and the company anticipates maintaining three operated rigs through the end of the year.

Significant efficiencies with longer laterals and larger completions in the area

Expecting approximately 9% production growth this year compared to 2014

Currently have 19 wells drilled with greater than 9,000 foot laterals including two record 13,000 foot laterals

Read more at chk.com

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