Chesapeake loses $4.15 billion on impairment charge during second quarter
Monday, August 10, 2015
Chesapeake Energy Corp. may have lost $4.15 billion for the second quarter, but the company upped production between the first and second quarters this year.
According to The Business Journal, Chesapeake’s one rig team has set records for nine days on a four-well pad and 7.9 days on another. Overall, the second quarter average from spud to rig release was 12 days. The company is also drilling longer laterals and using more frack stages.
Low commodity prices have decreased the value of Chesapeake’s assets, but the Oklahoma City-based company is confident that once the Open Pipeline is in service, most of Chesapeake’s Utica gas will be taken to the Gulf Coast, where prices are better. Chesapeake announced that it is cutting back on production in Ohio’s Utica Shale at least until November.
Via: The Business Journal > Chesapeake Posts $4.15B Loss on Impairment Charge
Recent Chesapeake news:
- Chesapeake could return to 68 percent of its wells to refrack June 2, 2015
- West Virginia: Non-profit groups file federal lawsuit against Chesapeake for allegedly taking gas without lease May 13, 2015
- Columbiana County well production encourages Chesapeake May 12, 2015
- Chesapeake cutting back Utica drilling in eastern Ohio May 11, 2015
- American Energy settles with Chesapeake April 15, 2015
- Chesapeake backs off, 2015 drilling numbers lowest since 2004 Feb. 26, 2015
- Chesapeake Energy to scale back drilling in Utica Shale Feb. 26, 2015
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.