Chesapeake Lowers Production 1 BCF/D & Dry Gas Drilling 70%
Chesapeake Energy released fourth quarter 2011, and full year 2011 numbers on Tuesday. About one month ago Chesapeake announced they were curtailing 0.5 billion cubic feet (bcf) of gas production per day because of low commodity gas prices. At the time they threatened to up that number to 1.0 bcf. According to Tuesday’s announcement, they have made that adjustment. Chesapeake wants to save its gas to sell it when the prices go back up, and likely hopes that by taking a good amount of gas out of circulation, it will help drive up the historically low prices sooner rather than later.
In addition to curtailing current production, Chesapeake also announced they will spend 70 percent less on drilling in dry gas areas this year from last year.
From the relevant portions of the Chesapeake press release:
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