Oklahoma 2018

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OKLAHOMA: KEY PLAYERS 14 | November 2018 | Chesapeake Operating LLC Chesapeake Operating LLC, founded in 1989 and based in Oklahoma City, operates as a subsidiary of Chesapeake Energy Corp. Chesapeake has 806,000 acres (97% HBP) in the Midcontinent region. In its Midcontinent operating area in Okla- homa, Chesapeake is utilizing two drilling rigs and placed eight wells on production during the second quarter, and it expects to place 12 wells on produc- tion during the third quarter and nine wells on production during the fourth quarter, according to the company's second-quarter 2018 operational results report. In the second quarter, Chesapeake reported 10,000 bbl/d oil production, 70 MMcf/d natural gas, 5,000 bbl/d NGL and 27,000 boe/d in the Midcontinent. "Chesapeake continues to appraise liquid-rich opportunities across its expansive acreage position in its Midcontinent operating area in Oklahoma and is deploying advanced completions and longer laterals to test new concepts," the report stated. "In the meantime, Oswego volumes continue to climb with average 30-day production rates of 1,015 boe per day and over 80% oil cuts." Cimarex Energy Co. Cimarex Energy's Midcontinent region includes the Anadarko Basin in Western Oklahoma, Southern Oklahoma and the Texas Panhandle. The com- pany is actively targeting the stacked Meramec and Woodford plays, with 116,500 net acres prospec- tive for the Meramec (100% HBP) and 136,500 net undeveloped acres prospective for the Woodford (88% HBP). The Midcontinent accounted for 52% of Cimar- ex's year-end 2017 proved reserves and 45% of 2017 production. Cimarex completed 43 net wells in 2017 and reported production of 294 MMcf/d of gas, 12,500 bbl/d of oil and 23,300 bbl/d of NGL for a total of 85,000 boe/d for the year. During the second quarter of 2018, Cimarex reported average production of 88,864 boe/d and completed 57 gross (10 net) wells in the Midcon- tinent, according to the company's second-quarter results report. At the end of the second quarter, 96 gross (25 net) wells were waiting on completion. Cimarex was operating three drilling rigs and one completion crew in the region as of Aug. 7. The company's 2018 Midcontinent drilling and completions capital is estimated to be $375 million to $425 million (41 net wells), and the region will contribute 40% to 45% of total company 2018 production. Approximately 75% of Cimarex's 2018 activity will benefi t from economies of scale, as the company utilizes multiwell pads and takes advantage of existing facilities. Cimarex was operating three drilling rigs and three completion crews in the region as of July 25. Chesapeake expects to place up to 35 wells on production in Oklahoma during 2018. (Photo courtesy of Chesapeake Energy Corp.)

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