One week they say they are absolutely thrilled with their results, now they're ready to pass on their oil prospects. Does this mean they are primarily focusing on the wet gas areas? There sure seems to be a lot of oil in the production numbers we've seen but maybe CHK is after the wet gas exclusively and is willing to let other companies focus on the oil. However, each well drilled in the utica, as we have seen, has produced oil, gas, & wet gas.
Cheasapeake overextended itself buying up leases in a 2 county county area that holds mostly gas,not much oil. Other companies ,like Gulfport, leased in an area that holds lots more oil,than gas. Sure, they now say they are satisfied with their core area. They gotta be!. No $$$ left to lease where the oil is. Harrison,Belmont, Guernsey. 2 years ago, when the big landgrab happened,it was a crapshoot as to where the best place would be to drill. Now we have a good Idea. The cheapest spots to grab leases was carrol/columbiana. Lot of HBP acres.Farmers who would sign for a low $$, not knowing. CHK will just have to make it work now,with the leases it has. They just were'nt as lucky as Gulfport., who sets in the sweetest spot. thanks to Wishgard. who signed up alot of those leases cheap,then flipped them to gulfport.
Agree with all your comments except "thanks to Wishgard". I think Gulfport was just plain lucky!
They'd probably agree.
It looks like Chesapeake has confirmed what many suspected all along. They're mainly in it for the liquid gas and see that as their main line of business in the Utica. So they actually were "thrilled" with the results, just not as interested in the oil. Thats comforting for a lot of folks.
Chesapeake Energy CEO predicts 'decades' of drilling in Ohio's Utica shale