Chesapeake Starts Up Gas Production on DFW Airport
Chesapeake Energy Corporation announced that it has recently initiated production of approximately 30 million cubic feet of natural gas equivalent (mmcfe) from the first 11 wells on its 18,000-acre Dallas/Fort Worth (DFW) International Airport lease.
Acquired approximately one year ago for $185 million, the airport lease represents a significant value creation opportunity. Based on the results of the company's proprietary 3-D seismic analysis acquired earlier this year and the drilling, completion and production results to date, the company plans to drill approximately 300 - 325 wells on the airport lease.
Assuming an estimated average recovery of approximately 2.5 - 3.0 billion cubic feet of natural gas equivalent (bcfe) gross reserves per well, the company believes that up to one trillion cubic feet of natural gas equivalent (tcfe) reserves can be produced from under the airport at an all-in finding and development cost of approximately $2.00 per thousand cubic feet of natural gas equivalent (mcfe).
"Today's announcement confirms what we had hoped for all along - that underlying the DFW International Airport would be a treasure of natural gas that could be worth billions of dollars if properly developed by a company with the vision and skills that Chesapeake brings to the Barnett Shale," said Aubrey K. McClendon, Chesapeake's CEO.
Chesapeake Energy Corporation is the largest independent producer and third-largest overall producer of natural gas in the United States.
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