Chesapeake Currently offering $300.00 an acre to landowners of southern Boyd County on standard CHK 5 year leases. Offered prices are up from $250/acre in the past month on acreage CHK acquired in southwestern most Boyd County.

Chesapeake Energy has increased its leasing activity north of the Northern Lawrence County well on Little East Fork Road (Chk-Stephens well).  

This increase in activity seems to be tied to the timing of well testing performed within the last few weeks, described by a representative from Chesapeake Competitor Cimarex Energy as a DFIT (Diagnostic Fracture Injection Testing) or a mini-frac, where completion fluid is pumped into the formation and then monitored for up to a month with very precise equipment to determine formation properties hydrocarbon type and anticipated flows.

Based on pump and hydrostatic pressures during these tests as well as other geophysical data it appears that Chesapeake is targeting the zones within the uppermost Rogersville Shale  to Lower Maryville Limestone with the first of three zones (stages) possibly being significantly overpressured.

This correlates closely with the hydrocarbon shows  found in the Inland Gas Company 542 Young well a mile and a half North East of  the new Stephens Well, Oil & Gas production from the Inland Gas 529 White Oil Well drilled near the corner of Friendship Road and Dog Fork of Laurel and the Oil and Gas Shows in the Inland 551 Smallridge well a half mile or so east of the 529.

The 529 White Well was the discovery well and first commercial oil & gas production established from the deep Rome Trough and confirmed as being sourced by the Rogersville Shale. 

It has taken nearly 50 years but at least this time around there is some good science behind the drilling activity.

ON June 9 past was sent this note from a friend who is following the Rogersville Play.

Got this in a note from investment bank Global Hunter Securities today- 

• Rogersville (XEC): Management isn’t ready to talk on its emerging Rogersville Shale position, but does hint that it has a sizable position (we think 100K+ acres), is surrounded by big-name neighbors (CHK, EQT, CLR, and COG), and confirms that acreage prices are starting to go for >$1,000/acre (XEC's entry price is well under that). For those new to the Rogersville, it runs through both Kentucky and West Virginia, and recent reports coming out of the basin highlight prolific vertical well results.