Chesapeake Energy 2Q Production Up 5% Over Year Ago
July 30 2009 - 5:24PM
Dow Jones News
Chesapeake Energy Corp. (CHK) said Thursday that its
second-quarter production increased by 5% versus the same quarter
last year, and reported a major boost to its hydrocarbons
reserves.
In an operational update, the Oklahoma City-based company said
that its second-quarter output averaged 2.453 billion cubic feet
equivalent per day, up from 2.328 billion cubic feet last year and
a 4% improvement from the first quarter of 2009. Proven oil and gas
reserves grew to 12.5 trillion cubic feet equivalent, a 700 billion
cubic feet increase. The company expects to close 2009 with 14
trillion cubic feet equivalent of reserves.
"We believe this is likely the best reserve growth performance
in the industry during the 2009 first half," said Chief Executive
Aubrey McClendon in a statement.
Chesapeake, the largest independent producer of natural gas in
the U.S., said it held back some production during the second
quarter but it is currently not curtailing output. It may resume
curtailments later this summer or fall, depending on market
conditions. Natural gas companies have held back on production due
to weak demand for the commodity. The drop in demand, a result of
the economic recession, has coincided with an unexpected boost in
supply from natural gas shale.
Chesapeake expects drilling and net acquisition costs for the
second quarter to be at an average of less than $1 per thousand
cubic feet equivalent.
-By Angel Gonzalez, Dow Jones
Newswires;713-547-9214;angel.gonzalez@dowjones.com
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