Chesapeake Releases Ohio Utica Production Numbers

Just released this morning. Good news for all in the wet zone of the Play.

http://www.chk.com/News/Articles/Pages/1610725.aspx

 

  • The Buell 10-11-5 8H in Harrison County, Ohio was drilled to a lateral length of 6,418 feet and achieved a peak rate of 9.5 million cubic feet (mmcf) per day of natural gas and 1,425 barrels (bbls) per day of natural gas liquids and oil (liquids), or 3,010 barrels of oil equivalent (boe) per day;
  • The Mangun 22-15-5 8H in Carroll County, Ohio was drilled to a lateral length of 6,231 feet and achieved a peak rate of 3.1 mmcf per day of natural gas and 1,015 bbls per day of liquids, or 1,530 boe per day;
  • The Neider 10-14-5 3H in Carroll County, Ohio was drilled to a lateral length of 4,152 feet and achieved a peak rate of 3.8 mmcf per day of natural gas and 980 bbls per day of liquids, or 1,615 boe per day; and
  • The Thompson 3H in Beaver County, Pennsylvania was drilled to a lateral length of 4,322 feet and achieved a peak rate of 6.4 mmcf per day of dry natural gas.

 

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Permalink Reply by Dan on October 6, 2011 at 8:35am

I've been thinking that to really compare the production of these wells, we have to take into consideration the drainage area of each.  The Buell Well has the best numbers of the four, but it also has the longest lateral.  If we divide each production number by the area of drainage, then we can compare the yield per acre, and it becomes more of an "apples-to-apples" comparison.

I will assume that drainage is 500' out either side of the lateral, and 500' off each end.  That means that each well would represent the following acreage:

  • Buell @ 6418' drains 1000 x (6418+1000) = 7418000 sq ft / (43560 acre/sq ft) = 170 acres
  • Mangun @ 6231' drains 1000 x (6231+1000) = 7231000 sq ft / (43560 acre/sq ft) = 166 acres
  • Neider @ 4152' drains 1000 x (4152+1000) = 5152000 sq ft / (43560 acre/sq ft) = 118 acres
  • Thompson @ 4322' drains 1000 x (4322+1000) = 5322000 sq ft / (43560 acre/sq ft) = 122 acres

Now dividing each production by the acreage and converting all products to equivalent barrels of oil (boe) gives adjusted values for better comparison.

  • Buell - 3010 boed / 170 acres = 17.7 boed/acre
  • Mangun - 1530 boed / 166 acres = 9.2 boed/acre
  • Neider - 1615 boed / 118 acres = 13.7 boed/acre
  • Thompson - 6.4Mmcfd/(6Mcf/boed) /122 acres = 8.7 boed/acre

 

Permalink Reply by BuckeyeMom on October 6, 2011 at 1:58pm

After seeing how high the production is for the Buell well, makes you wonder why they are focusing so heavily in the Carroll County area and not putting more rigs south.  

 

Permalink Reply by Aaron Brown on October 6, 2011 at 3:09pm
   
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Permalink Reply by Dan on October 7, 2011 at 3:04am

Aaron, the barrel of oil equivalent (boe) is a conversion of all components to their equivalent btu value in oil.  We also see often the gas cubic feet equivalent (cfe) too which is the conversion of all the components to their equivalent btu value in gas.  It is really only useful for comparing btu content, since the market value of the various forms varies considerably.  Typically 6000 cubic feet of gas is considered equivalent in btu to 1 barrel of oil.  At $4/Mcf, gas would bring in only $24 for the same btu as 1 barrel of oil, but right now a barrel of oil is bringing several times that amount.

All the wild guestimates on revenues paid should at least consider these btus in the form they appear.  Also, you have to factor in the dilution of royalty by having the drilling unit acreage bigger than the acreage being drained by the well.

Permalink Reply by Shower Bath on October 6, 2011 at 1:08pm

Some very interesting reading about Chesapeake and their CEO if you have the time.

http://blogs.forbes.com/christopherhelman/

Randy

Permalink Reply by scott peterson on October 6, 2011 at 1:20pm
#6 is definitely interesting........
Permalink Reply by Gary on October 6, 2011 at 10:33pm
Does any one know anything about the 3 wells CHK is drilling on rolling acres in beaver county pa?

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