Chesapeake and CNOOC Sign Niobrara Deal

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Chesapeake is inking deals left, right and center in their various unconventional areas.  This $1.3B Niobrara CNOOC deal is the latest in a series of deals which has already included a billion dollar CNOOC Eagle Ford deal.  They have still been picking up smaller chunks of expensive unconventional acreage namely the Samson DJ Basin and Antares Eagle Ford positions.

For some free financial analysis, the guys over at seekingalpha.com have already posted on this deal.

Below is an update of what the permit landscape looks like in the Powder River Basin and DJ Basin of Wyoming.  These are permits since 2010 greater than 3,000′.

WY-Permits-2010-300x225There is not very much Wyoming Niobrara production available to the public as of yet.  The general feeling is that natural fractures will play a large role in this play.  That can, however, lead to some deceiving IP rates.  The key to high cums and EURs will be the matrix flow.  EOG has been discussing their Niobrara program for about a year, but have still not released EURs.

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