Chesapeake raises 2008 bar
Photo by Chesapeake Energy
Chesapeake Energy said today it will boost capital spending and production
forecasts in 2008 and 2009, citing several new natural gas and oil
discoveries and higher drilling activity at existing projects.
The natural gas discoveries are in the Haynesville Shale in Louisiana and the
Anadarko Basin in Oklahoma and Texas. The oil projects range in size from
about 100,000 to 1 million acres and lie in four different US states.
The company, based in Oklahoma City, said it will spend an additional $275
million in 2008 and $675 million in 2009, Reuters reported.
Citing uncertainty in the financial markets, Chesapeake said it will fund some
or all of these additional spending through the public capital markets, a
departure from previously announced plans.
Shares of the company were nearly flat in post-market trading at $45.
Chesapeake said its now expects its average daily production rate in 2008 of
2.37 billion cubic feet equivalent per day, up 5% from a forecast the
company made last month.
In 2009, the company sees average daily production of 2.74 Bcfe, up 33% from
last month's forecast.
The independent oil and gas producer also said it will increase spending in
existing shale plays including the Barnett Shale in North Texas and the
Fayetteville Shale in Arkansas.
25 March 2008 04:22 GMT
| last updated:
25 March 2008 04:22 GMT
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