Enverus Blog

Insights across the energy value chain

Chesapeake spoke to their Niobrara program at their Analyst Day on October 13th.  They did not go into much detail and there was not much new information either.  But, nonetheless here are some of the highlights.

The bulk of their acreage is in the Powder River Basin (PRB) North of the DJ Basin.  Above shows the breakdown of their acreage, with a substantial chunk being in Converse County, WY.  405,000 net acres are in the PRB and 280,000 net are in the DJ Basin.

Chesapeake In The Powder River Basin and DJ Basin

The Spillman Draw Unit is a horizontal Niobrara well, while the Wagonhound is a horizontal Frontier sand well.  Chesapeake made a point to discuss the potential for multi-horizon production over their acreage.  The Frontier sands underlie the Niobrara on their PRB acreage, while the Codell (same age as Frontier) underlies their DJ acreage.

It is important to point out that these wells are not optimized, the stimulations are not perfected.  These are early on in the program and will no doubt improve on both the performance front and the cost front.

Below is a stratigraphic column from the presentation to help show where the stacked pay may come from.  Notice the Frontier and Codell underlie the Niobrara.  They have been produced historically and current methods may help to optimize their production.

Finally, lets look at the recent Chesapeake permits.  I added the Samson Oil and Gas permits here in Goshen County since Chesapeake was the buyer for these assets earlier this summer.  I would not be surprised if there are more Chesapeake permits being permitted under a different name that I did not pick up here.  Also, there is a company, Big Bear Oil and Gas that spent big bucks all summer at the Wyoming Oil and Gas lease Auctions.  On the order of $3,000 per acre, the most of any company at the auctions and it is not unreasonable to suspect Chesapeake is the recipient of those leases.  That is pure speculation however.  If anyone is interested in those results, I have them in spreadsheet form in the DNA Niobrara Unconventional Update Regulatory folder, all that is required is a DI login.

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