The rumors of the size of the find are wild (20 trillion cubic feet ), but regardless, it should make FTL happy that his company will continue to see growth in the USA.
Chesapeake discovers Louisiana gas field
A liberal dose
March 25, 2008
Chesapeake Energy said Monday that it has discovered a new natural gas shale field in Louisiana that could become its greatest venture yet and that it intends to add drilling rigs in various regions -- including the Barnett Shale.
The Oklahoma City-based company announced its discovery of the Haynes- ville Shale in Louisiana, as well as several other unconventional natural gas and oil projects.
The developments are so significant that executives have decided to boost capital investments in 2008 and 2009 in those areas and in Chesapeake's most important existing plays, such as the Barnett Shale in North Texas, the company said in a prepared statement. All told, they're planning to add 24 rigs across three separate shales.
The extra activity should add $950 million to Chesapeake's anticipated drilling and leasing expenses in 2008 and 2009, the company said. That's on top of the planned $4.6 billion investment about which Chesapeake informed investors this month.
'We believe we must invest the necessary capital to more fully capture the upside of our new opportunities,' Chief Executive Aubrey McClendon said in the statement.
Chesapeake, which is using four rigs to drill in the Haynesville Shale, plans to increase activity to about 10 rigs there by year's end and may go further in 2009.
'Chesapeake believes the Haynesville Shale play could potentially have a larger impact on the company than any other play in which it has participated to date,' the company said.
The company claims five new unconventional oil projects in four states, ranging from about 100,000 acres to 1 million acres. Two have begun oil production, and initial drilling in the others is scheduled during the next year.
The company intends to add five drilling rigs in the Barnett Shale by year's end. That would bring its rig count here to 45.
More activity is planned for the Fayetteville Shale in Arkansas and the Marcellus and Lower Huron shales in the Eastern United States.
Chesapeake improved its overall forecast for 2008 and 2009, with average daily production rates now expected to rise over last year's performance by 21 percent in 2008 and by 16 percent in 2009.
Chesapeake's stock (ticker: CHK) closed Monday at $45.01, up 72 cents on the New York Stock Exchange.
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