Just released this morning. Good news for all in the wet zone of the Play.
http://www.chk.com/News/Articles/Pages/1610725.aspx
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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:
Now dividing each production by the acreage and converting all products to equivalent barrels of oil (boe) gives adjusted values for better comparison.
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.
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.
Some very interesting reading about Chesapeake and their CEO if you have the time.
http://blogs.forbes.com/christopherhelman/
Randy
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