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Chesapeake investing in Haynesville gas play as prices rise

  • Rising natural gas prices could help Chesapeake Energy (CHK) profit off a plan to revive the maligned Haynesville shale play, where it gambled billions of dollars six years ago, and the 7-9 rigs CHK expects to deploy to the reservoir this year could boost daily rates for U.S. land drilling companies, analysts say.
  • CHK's plan would increase the number of Haynesville rigs 25% to ~50 by the end of this year, according to an analysis by Raymond James - not like the old days, but renewed gas drilling could drive up margins for U.S. rig contractors by spreading out demand to other regions in the country.
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Comments (2)
  • Gigem77
    , contributor
    Comments (1476) | Send Message
     
    "But Chesapeake CEO Doug Lawler told investors earlier this month that recent cost improvements and recovering prices have made the reservoir a more lucrative investment, and that it could make a profit there even if gas sold for $4.50 per million British thermal units." 7 to 9 rigs each drilling a new well very 20-25 days.. it's worth watching
    22 Feb 2014, 09:45 PM Reply Like
  • sbrncra
    , contributor
    Comments (253) | Send Message
     
    aoil sitting on a sweet spot!
    23 Feb 2014, 10:54 PM Reply Like
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