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Chesapeake Liquids in the TX Granite Wash


There has been much chatter about gas companies needing to become more oily lately.  Not all companies necessarily agree with this.  Some seem to have taken offense from these ‘Wallstreeters’ telling them to be oily, see Petrohawk at IPAA NY conference.  Chesapeake is one company that comes to mind when you think about big gas shale players even though they are shifting some of their focus to oil shales these days. This entry will look at Chesapeake liquids production coming from the TX Granite Wash since 2008.

First, here are the Chesapeake producers that have come online since 2008 from the Granite Wash.  It is colored by cumulative produced oil and bubbled by maximum monthly oil.  The liquids sweet spot is in northern Wheeler county.

Next, I used HPDI Production tools to generate a few production visuals.  The first is a historical production chart for these wells.  Note that the production tops out at about 70,000 bbls/month, and has cum’ed at over 1 million bbls.  Below that is a vintage cumulative by quarter chart which nicely breaks out the production stream by quarter first produced.  The 4Q2008 wells seems to have contributed the most.

Finally, below is a look at the Chesapeake 2010 permitting activity.  Of the 54 2010 permits filed, the majority are in the northern part of Wheeler county.  I have layered this map with Drillinginfo Land Tracks to show the Chesapeake lease position in this area.

1.3 million bbls of oil produced is a sizeable chunk of liquids coming from this area for Chesapeake.  They also have OK Granite Wash production, Wolfberry oil production not to mention NGLs that may be produced.  DI-ESP will continue to track Granite Wash performance.  We put our findings in the DNA Granite Wash Unconventional Update so take a look.

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Justin Birmingham

Justin Birmingham is a Research Analyst at Drillinginfo. He creates proprietary research studies, works with statistical models and manages datasets for the DI Analytics team. Justin earned his Bachelor of Science from Texas State University – San Marcos.