Chesapeake Ups Production in Utica Shale
OKLAHOMA CITY – Higher oil prices helped lift oil and gas production in Ohio’s Utica shale for Chesapeake Energy Corp. during the three months ended March 31, the company said.
Chesapeake reported that it produced an average of 11,000 barrels of oil and 440 million cubic feet of natural gas — or 107,000 barrels of oil equivalent — per day from the Utica during the period.
This compares with daily averages of 8,000 barrels of oil and 380 million cubic feet of natural gas — or 96,000 barrels of oil equivalent — recorded for the first three months of 2017.
During the first quarter of 2018, the average price of Utica oil stood at $59.82 per barrel versus $45.42 per barrel over the same period in 2017, Chesapeake said.
Chesapeake said it currently operates two rigs in Ohio’s Utica and placed 10 wells into production during the first quarter of 2018. New completion methodologies have led to a 30-day average daily production rate increase of 65% on six wells under the new program.
The company said it expects to place seven wells into production during the second quarter of 2018 and up to 35 wells for the full year.
Chesapeake’s total production rose to 554,000 barrels of oil equivalent per day during the first three months of 2018, up from 528,000 barrels of oil equivalent per day a year earlier.
Net income during the first quarter of 2018 stood at $268 million versus $75 million a year earlier.
Copyright 2020 The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our print edition and sign up to our free daily headlines.