Floyd Wilson recently sat down with Jim Cramer to discuss Halcon’s development strategy across its shale plays. The company keeps to a strategy of developing infrastructure before developing assets. [Read more…]
Chesapeake Energy continued its string of successful joint-ventures (JV) following leasing that has added more than 5 million acres in shale plays over the past few years. In all, the company has spent $2,200 per acre and gone on to sell a portion of that acreage for almost $11,000 per acre. Chesapeake has recouped its investment in all of those plays by selling no more than a 33% interest in each shale play.
In the latest JV, CHK is getting $2.14 billion or $15,000 per acre for a 25% interest in 650,000 net acres in the wet gas window of the Utica Shale in Ohio. I assume this is the area where CHK references “superior economics”. It will be interesting to see what happens in the dry gas and oily windows.
Chesapeake’s Eagle Ford drilling program has ramped up to 29 rigs running across the play. 29 rigs leads the way in South Texas and those numbers are expected to stay high as CNOOC’s cost carry continues to help fund development. [Read more…]
Magnum Hunter released its capital spend for 2012. The company will spend a total of $200 million with $50 million directed to midstream investments through Eureka Hunter Pipeline. That’s a drop of approximately $55 million from 2011, but 2012’s budget will be funded without the need for raising external capital. [Read more…]
The Utica Shale vs. the Eagle Ford Shale debate has drawn a lot of attention since Chesapeake announced a 1.25 million acre position in the Utica Shale. Aubrey McClendon’s comments have gotten a lot of traction:
As a result of its analysis, the company believes the Utica Shale will be characterized by a western oil phase, a central wet gas phase and an eastern dry gas phase and is likely most analogous, but economically superior to, the Eagle Ford Shale in South Texas.
That quote sent many articles to the press touting the Utica Shale as the new great shale play and made many Texans wonder if we’d lose some drilling rigs to Ohio. You can track the rig count yourself with the Eagle Ford Shale Drilling Index that is updated each Friday, but if you don’t have the time, the counties where the Eagle Ford is present have seen more than 40 rigs come into the play over the past three months. That’s more than 10% of the total U.S. onshore rig count (230+ rigs) working in an area that is economically inferior. The catch, it’s possible, but the Eagle Ford shouldn’t lose much if anything. [Read more…]