Drilling Down

Chesapeake to Bring 40 Utica Wells into Production

OKLAHOMA CITY – Chesapeake Energy Corp. plans to place 40 of its wells into production in eastern Ohio’s Utica shale during 2018, the company announced Thursday as part of its fourth quarter and year-end financial and operational results.

Chesapeake said that it placed 67 wells into commission in 2017 and plans to operate two drilling rigs in the Utica this year.

Average daily production during 2017 stood at 547,000 barrels of oil equivalent, or boe, versus 635,400 during 2016. Average daily production during the three months ended Dec. 31, 2017 was approximately 593,200 boe compared to 574,500 boe during the same period in 2016.

The company’s Utica wells during the fourth quarter produced a daily average of 11,000 barrels of oil, 477 million cubic feet of natural gas, and 25,000 barrels of natural gas liquids, the statement said.

For the full year, Chesapeake recorded adjusted net income of $314 million during the quarter, compared to $64 million during the same period in 2016. For the full year, Chesapeake recorded adjusted net income of $742 million versus a loss of $31 million in 2016.

Chesapeake reduced its debt by 32%, or $1.3 billion, during 2017, the company said. The company conducted asset sales totaling $1.3 billion during the year and announced divestitures totaling $575 million.

“I’m very pleased with our fourth quarter and full-year performance, as we made significant progress toward our goal of reducing our debt, increasing cash flow generation and margin enhancement,” Chesapeake CEO Doug Lawler said in a statement. “Fiscal year 2017 was a pivotal year for Chesapeake.”

Published by The Business Journal, Youngstown, Ohio.