Chesapeake Accelerating Eagle Ford Pad Drilling Program in 2014

Net Production Down ~8% to 87,000 net (191,000 gross) boe/d From Q3
Chesapeake Pad Drilling Program in Eagle Ford

Chesapeake Pad Drilling Program in Eagle Ford | Click to Enlarge

Chesapeake plans on increasing pad drilling in the Eagle Ford in 2014 and reducing average completed well costs to $6.4 million or less per well. The company has eased into pad drilling in the Eagle Ford, while other operators have aggressively pursued the procedure.

Read more: Chesapeake Eagle Ford Spending $1.82 Billion in 2014

“Transitioning to pad drilling a little bit slower has allowed us to see what the competition is doing [in the Eagle Ford],” said Mikell J. “Jason” Pigott, Sr. VP Operations, Southern Division

In the second quarter of 2014, Chesapeake intends on accelerating its production growth in the play.

Chesapeake Q4 Eagle Ford Production

Read more: Chesapeake’s Eagle Ford Production Set to Top 100,000 boe/d by Year’s End

In the fourth-quarter of 2013, Chesapeake’s Eagle Ford net production was 87,000 net (191,000 gross) boe/d. That’s down slightly from average production in the third-quarter, which was 95,000 net (211,000 gross) boe/d.

The peak average production rate was also down quarter-over-quarter from ~930 boe/d in the third quarter to 800 boe/d in the fourth-quarter.

Weather and a planned inventory reduction in the second and third quarters impacted fourth-quarter production in the Eagle Ford.

Pigott said, “in South Texas, we had a significant rain event that caused some flooding on the roads, [and slowed some of our operations in the fourth-quarter].”

Chesapeake’s Eagle Ford production breakdown for the fourth-quarter was as follows:

  • Crude oil – 68%
  • NGL’s – 14%
  • Natural Gas – 18%

In the fourth-quarter of 2013, 12 rigs were running in the Eagle Ford Shale, and Chesapeake brought 65 gross wells to sales. That’s down slightly from the third-quarter where 13 rigs were running and 100 gross wells were brought to sales.

Chesapeake Highlights

  • Reducing average completed well costs to $6.4 million or less per well in 2014
  • 87,000 net (191,000 gross) boe/d production in Q4 2013 – Down ~8% from Q3 2013
  • Peak average production – 800 boe/d in Q4
  • Weather impacted production in Q4
  • 12 rigs running and 65 gross wells to sales in Q4 2013
  • Eagle Ford production – 68% crude oil, 14% NGLs, 18% Natural Gas

Read more at chk.com

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Kirk Eggleston

Kirk Eggleston

Contributor at EagleFordShale.com
Kirk Eggleston writes on significant news developments in the Eagle Ford and Bakken Shale plays. He is a former broadcast journalist, and has experience covering news and politics in the Texas and Louisiana markets.

Comments

  1. Besttex says:

    Bottom line us the Eagle Ford is a joke. Companies will be pulling out probably within 1-2 years from now.

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