Chesapeake Energy Continues to Expand Production in the Marcellus Shale

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Houston Star-Telegram (Feb 16)
Chesapeake reports 19 percent production increase

Chesapeake Energy, one of the largest gas drilling companies in the U.S., recently reported a 19% increase in its natural gas production across all of its shale plays. With respect to the Marcellus, we learn from a Houston Star-Telegram article that:

  • Chesapeake has a huge leasehold of 1.6 million net acres in the Marcellus
  • Current net Marcellus production equals 65 million cubic feet of gas per day
  • Chesapeake expects its Marcellus output will rise to 270 million cubic feet of gas per day by year-end 2010 (over 4x current levels)
  • Chesapeake expects its Marcellus output will rise to 450 million cubic feet of gas per day by year-end 2011 (nearly 7x current levels)
  • Three recent wells drilled in Susquehanna County (PA) had peak 24-hour rates of 8.7 million, 8.6 million and 8.4 million cubic feet of gas

6 Comments

  1. i live in thompson pa. 4 acres near swamp with its an excellent source of natural gas i signed with applachian, did it all get sold to those who have signed up with app. or will they contact me. im across from thompson township building and next to pennsylvania pa. dot. i thompson. i have my own water source of water it is an underground natural spring not a well. are they aware of that, when r they comming, my water needs to be tested first. anxious and cant wait. i have a good feeling my area is the prime spot

  2. we live in harmony twp, and hess has a well going up less than 2 miles from our property, we signed with Chesapeake (no group). We are wondering if we will get royalties from this well? will someone contact us? Not sure how this is all supposed to work out.

  3. ricntoni – You should receive royalties from this well. After a large amount of acreage is leased, Chesapeake has to permit for a unit. A unit ties together leased acreage in chunks of 640 to 1000 contiguous acres. If your leased property is part of this unit, then you will receive royalties from a well drilled anywhere on the unit. Your royalties will be proportionate to your acreage. I would expect to see several more wells drilled around you. It’s very exciting!

  4. i own 50 acres in Thompson Pa and signed a lease with chesapeake 2 years ago but havent heard anything. i always assumed that only if i had a well on my property would i get any royalties…how do i find out what the liklihood of that is? not sure what is meant by royalties for a ‘unit’ of acreage…

  5. I live in the Harmony PA area located on swain hill. i know there are wells going up, when will i see royalties for my leased land?

    thanks

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