Chesapeake has set its 2014 capital budget at $5.2 billion - $5.6 billion. That's down ~20% from the midpoint of the company's 2013 capital budget.
Approximately 35% of the budget will go to the Eagle Ford in 2014.
Low end estimates put that figure at about $1.82 billion. The company plans to run 15 - 18 operated rigs in the Eagle Ford throughout the year.
Chesapeake Plans on Divesting Acreage in 2014 and Increasing Production
In 2014, Chesapeake plans to reduce its capital expenditures, and continue divesting noncore assets. In July 2013, the company sold 55,000 net Eagle Ford acres to EXCO Resources for $680 million.
Average daily production estimates for 2014 are 680,000 - 695,000 boe/d company-wide, with an estimated 1,300 gross operated wells to coming online in 2014, or approximately 115 fewer wells than in 2013.
Chesapeake December 2013 Production and 2013 Well Inventory
For the month of December, net production of an Eagle Ford well was 90,000 boe/d.
At the end of 2013, 109 gross operated wells had been drilled in the Eagle Ford, but were awaiting completion. That figure represents the third highest total of un-completed wells at the end of 2013 in Chesepeake's play interests, with the Utica Shale and Marcellus Shale ranking at 195 and 112 respectively.
Chesapeake at a Glance
- 2014 Capital Budget in Eagle Ford is $1.82 billion
- Chesapeake plans on divesting more noncore assets in 2014
- Net production of an Eagle Ford well in December 2013 was 90,000 boe/d
- 109 gross operated wells awaiting completion in Eagle Ford at the end of the year
- 680,000 - 695,000 boe/d company-wide, with approximately 1,300 gross operated wells to sales in 2014
Read more at Chesapeake.com