Even though this is a few months old I think it is well worth a...

Even though this is a few months old I think it is well worth a read.



Chesapeake Energy Reports Niobrara Shale Development


Chesapeake Energy (CHK) issued a second quarter of 2010 operational update on the companys activities in the Niobrara Shale.
The company has 675,000 net acres spread across the Powder River Basin in Wyoming and the Denver Julesburg Basin in Colorado and Wyoming.

Chesapeake Energy has drilled two gross wells in the Niobrara Shale to date, and is starting negotiations to bring in a third party here for a joint venture to accelerate development of its Niobrara Shale properties.

The company will increase its rig count here over the next two years to six rigs in an attempt to boost production from oil and other liquids.

The Niobrara Shale has a reservoir porosity ranging from 5.5% to 7.5% in the Powder River Basin and from 7% to 9% in the Denver Julesburg Basin. The Niobrara Shale is more pressurized in the Powder River Basin since it is at a deeper depth.

Chesapeake Energy reported that industry wide 33 wells have been drilled to date so far in the Niobrara Shale, and 9 wells are being completed.

There have been 175 well permits issued to ten exploration and production companies.