Monday, September 28, 2009
Rig Count to Rise at Chesapeake Energy
To further develop its Big 4 shale leaseholds, Chesapeake Energy (CHK-$28.14) plans to operate an average of approximately 101 rigs in 2010 to drill up to 795 wells. The current operating rig count is 83. The company has had some success in raising cash - and lowering its own drill bit costs - by selling investment interests on some of this acreage. For example, the company expects that its joint venture partner, StatoilHydro, will pay 75 percent of drilling costs in the Marcellus for 2010. If weak natural gas prices persist during the next two years, can the company live within its cash resources? Read More at BNET Energy….