Chesapeake Energy Now Largest Marcellus Shale Leaseholder With 1.45 Million Acres

Chesapeake Energy increased its leasehold ownereship of Marcellus Shale natural gas reserves by 150,000 acres during the second quarter of 2009 giving the company of total of 1.45 million acres in Pennsylvania, West Virginia and New York.

During the 2009 second quarter, Chesapeake’s average daily net production of approximately 30 million cubic feet per day in the Marcellus increased approximately 155 percent over the 2009 first quarter and approximately 600 percent over the 2008 second quarter.

Chesapeake is currently producing approximately 30 million cubic feet per day from the Marcellus and anticipates reaching approximately 80 million cubic feet per day by year-end 2009 and approximately 200 million cubic feet per day by year-end 2010.

Since January 1, 2008, Chesapeake has drilled and completed 25 company-operated horizontal wells in the Marcellus. To date, production rates and reserve recoveries in the Marcellus have exceeded the company’s expectations while decline rates have been lower than anticipated.

Chesapeake Energy estimates the pre-tax return on each Marcellus Shale well is 71 percent. Click here for the complete second quarter operational report.