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 (2611) | 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 (259) | Send Message
    aoil sitting on a sweet spot!
    23 Feb 2014, 10:54 PM Reply Like
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