Chesapeake Energy 1994 Annual Report Download - page 10

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THE SECOND DOWNDIP PLAY: NAVASOTA RIVER
Chesapeake believes its 13 wells in Navasota River demonstrate that this 45,000 acre
block in the downdip portion of the Giddings Field may represent the best drilling
opportunity in the United States. The Navasota River leasehold block, located in
Brazos and Grimes Counties, Texas, was introduced in the "New Areas" section of last
year's annual report. We were hopeful that the drilling results in Navasota River
would be as attractive as those we had experienced in the downdip Fayette area.
However, the results from the 13 wells in Navasota River have significantly
exceeded our expectations. Gross reserves
per well have been estimated by our NAVASOTA RIVER DRILLING RESULTS
(2/7/94 THROUGH 10/10/94)
independent reservoir engineers to
exceed an average of eight BCFE. For
fiscal 1995, Chesapeake has budgeted
$18 million to drill lime net (24 gross)
wells in Navasota River, leaving
approximately 20 potential wells to be
drilled in fiscal 1996 and beyond.
THE THIRD DOWNDIP PLAY:
INDEPENDENCE
The Independence area could become
Chesapeake's third downdip success
based on the company's geological model
that has performed successfully in the
downdip areas of Fayette and Navasota
River. Located to the south and
southwest of the Navasota River area
Grimes and Washington Counties, the
Independence acreage block contains
approximately 1 00,000 gross acres on
which potentially 100 horizontal wells
could he drilled. For fiscal 1995, we have
budgeted approximately $8 million to
drill five net (19 gross) wells that will test
II Days
We On Line
Average
Daily Ol
IBbIs)
Average
Daily Gas
(McI)
Cvmvlotive
BOE
RI 248 1,215 7,052 592,815
#2 194 1,030 8,924 488,388
#3 193 212 16,319 565,850
#4 147 832 11,212 397,014
#5 114 1,195 5,511 240,978
#6 102 129 14,046 251,921
#7 85 43 13,847 199,808
#8 62 333 13,438 159,475
#9 50 12 12,688 106,322
#10 38 946 6,859 79,386
#11 37 1,172 4,927 73,741
#12 31 30 15,667 81,882
#13 10 640 8,522 20,607
AVERAGE 101 600 10,693
TOTAL 3,258,157
CHESAPEAKE'S INVENTORY OF
DOWNDIP UNDRILLED LOCATIONS
FAYETTE 31
NAVASOTA RIVER 44
INDEPENDENCE 100
8CHESAPEAKE ENERGY CORPORATION