Buoyed by one very productive well, Chesapeake Energy Corp. has high hopes for its latest discovery in western Oklahoma and the Texas Panhandle.
The Oklahoma City-based oil and natural gas producer has completed two horizontal wells in the Hogshooter play. Both wells were drilled about 10,000 feet deep with laterals extending close to 5,000 feet.
“We expect this new Hogshooter discovery to provide a significant boost to Chesapeake's focus on harvesting its existing assets for growth and value creation rather than on pursuing new leasehold,” CEO Aubrey McClendon said.
Houston-based Apache Corp. was the first company to report activity in the oil-rich Hogshooter play in 2010. Another Houston company, Linn Energy, is active in the play as well.
McClendon said Chesapeake's first well in the play, the Thurman Horn 406H, yielded more than 7,300 barrels of oil equivalent a day in its first eight days of production. That is nearly four times as much as the company's other Hogshooter well.
“Based on production results to date and our research of industry production records, we believe the Thurman Horn 406H well is one of the best oil wells drilled onshore in the Lower 48 (states) in the past several decades,” he said.
The Wheeler County, Texas, well — which was drilled in a section of land with three wells targeting other formations — currently produces about 7,000 barrels of oil equivalent a day.
Chesapeake owns about 30,000 net acres in the play. More than 90 percent of that land is held by production from Chesapeake's legacy production in the deeper Granite Wash play.
The company has drilled two additional Hogshooter wells that are awaiting completion.
Chesapeake plans to drill at least 65 more wells in the new play over the next few years, according to the company.
Those wells are part of Chesapeake's already budgeted Anadarko Basin drilling program, so they will not require any increase to its capital expenditure budget, the company said.