Chesapeake's Eagle Ford Shale asset is garnering much of the company's attention in 2012. To the tune of almost 25% of the company's capital, with 33 of the company's 161 rigs focused in the Eagle Ford. Total net production averaged a little less than 18,000 boe/d net in the fourth quarter of 2011 and current production stands at 22,600 boe/d net. Production was up 60% quarter over quarter and 370% year over year. (You can get pretty amazing growth rates running 33 rigs) Gross operated production is close to passing 50,000 boe/d and stands at a little over 45,000 boe/d. CNOOC owns a 33% interest in Chesapeake's acreage, so net will always be a close to 50% when you account for royalties and other WI owners.
The production mix is 50% crude, 20% NGLs, and 30% natural gas. That will likely stay the same for some time unless the company begins to target the natural gas rich Pearsall Shale......and that's not happening at sub-$3 gas prices.
Well performance in the Eagle Ford continues to improve.
108 wells tested with peak oil rates of 500 barrels of oil or more
The company has drilled and is producing from 178 wells and has 200 additional wells close to coming to production. That is the main reason for adding almost 350 miles of pipelines in 2011 and plans for further expansions in 2012. It will be needed for the volumes of oil and gas the company plans to bring online.
Chesapeake will also add frack crews during 2012. 7 company crews are running now and that will grow to 11 by March and 13 by year-end. That should make them virtually self sufficient when it comes to fracking Eagle Ford wells.
Chesapeake has more than 400,000 net acres in the Eagle Ford primarily located in the oil window of the Maverick Basin.
Read the company's press release at chk.com