Chesapeake Energy Continues to Expand Production in the Marcellus Shale

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