sleeping giant., page-10

Hi everyone hope the Christmas season has been a merry ole time.

Here's an excerpt from the Shale Shaker, the journal of the Oklahoma City Geological Society "Oklahoma 2009 Drilling Highlights"

"The following are wells reported as completed in 2009 that are considered significant"

"4) Sec. 3-28N-15W (Woods County): Widely scattered horizontal Mississippian Lime production found at least a temporal focal point with the drilling of the Chesapeake Serenity 1-3H. Completed in January 2009, this well had an initial flowing potential of 1250 BO + 1064 MCFG + 1392 BW with a MD of 9,212' and a TVD of 5,071'. The well was perforated from the 5,480' to 9,156' and acid fracture stimulated in seven stages with about 125,000 pounds of sand per stage. Several follow up wells have been drilled around the Serenity, each fracture stimulated in a single large (800,000- 900,000 pound) stage. In its first ten months online the Serenity has produced about 61 MBO and 82 MMCFG. Chesapeake's four follow up wells had intitial potentials between 48 and 271 BOPD, but none in three to five months has produced more than 2 MBO and 8 MMCFG. Time will tell if eloborate acid fracture stimulations are economically justified in the Mississipian Lime."

For what we know now about multi stage fraccs of course the follow up wells didn't perform. one super stage compared to seven has been shown to be not as effective.

Chesapeake currently expects the Mississippian play to have average wells ip of 300 BOEPD with 10 year cumulative production 225 MBOE with well costs of $2.8 million as per their latest investor and analyst presentation page 12 of Anadarko Basin "Target well profiles"

RFE enthuasiastic estimate is 420 MBOE with a well cost of $2.5 million. Of course the extra 200,000 bbls can be recovered at a rate of 50 bopd over 11 years so if the outlook is for 21 years okay.

cheers Icharus