joint venture, page-43

Just using this thread as hate starting new ones so nothing to do with a JV but here is further indication of Chesapeake's aggresive intentions.

Hopefully the Niobrara comes up trumps as this aggressive position from Chesapeake will mean the ORRI adds to the balance sheet sooner rather than later.


December 14, 2010

Chesapeake's ambitous goals

Oklahoma City--based Chesapeake Energy, the second-largest natural gas producer in North Texas' Barnett Shale, unveiled a new company presentation today on its website, www.chk.com, in which it declares a number of company-wide ambitions for 2011. These include generating a cash flow of $4.9 billion and a net income of $1.8 billion, boosting natural gas and oil production by 16 to 20 percent and increasing reserves by a similar amount.

The company said it plans to "dramatically reduce" its leasehold expenditures in 2011, because "there are no more new big oil plays on CHK's horizon" that require investing more than $1 billion per play, as it has done this year in the Eagle Ford Shale play in South Texas, the Niobrara Shale in the Rocky Mountain region and a third "unnamed play."

Topping Chesapeake's "Strategy" list was this pronouncement: "Having helped lead the Gas Shale Revolution from 2006-09 (and having helped create today's temporary surplus of natural gas), CHK is now focused on transferring its expertise on finding and developing unconventional resources to more valuable oil and NGLs (natural gas liquids)." Chesapeake hopes oil and NGLs will rise from 10 percent to 25 percent of its production "in the next few years." The goal is to boost liquids production fivefold, to 250,000 barrels per day, by year-end 2015.

While shifting its focus toward oil, Chesapeake has the leasehold capacity to remain a major player in the natural gas-rich Barnett Shale for years to come.

--Jack Z. Smith

http://blogs.star-telegram.com/barnett_shale/2010/12/chesapeakes-ambitous-goals.html