Chesapeake Energy 1996 Annual Report Download - page 23

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SECONDARY OPERATING AREAS
Williston Basin
Drilled Wells 1
Undrilled Locations 75-150
The Williston Basin in North
Dakota and Montana is an-
other example of Chesapeake's
ability to develop large projects in
areas with hydrocarbon reservoirs
that may respond well to horizontal
drilling or 3-D seismic technology.
The focus of the company's 325,000
acres in the southern portion of the
basin is the Red River "B" formation,
where Chesapeake's competitors have
drilled more than 75 horizontal oil
wells and where Chesapeake plans to
drIll 5-10 wells in fiscal 1997.
On 125,000 acres in the north-
ern portion of the basin, Chesapeake
is using 3-D seismic to target Red
River "C" and "D" vertical prospects.
The company's first well in this area
is now underway and more seismic
and drilling work is scheduled for fis-
cal 1997.
CHESAPEAKE ENERGY CORPORATION
Lovington
Drilled 'Wells1
Undrilled Locations 50-75
In the Lovington Project in Lea
County, New Mexico, Chesa-
peake is utilizing 3-D seismic
technology to search for algal mound
buildups. The company believes these
reservoirs have been overlooked in
this portion of the Permian Basin be-
cause of inconclusive results provided
by traditional 2-D seismic imaging
technology.
During fiscal 1996, Chesapeake
shot two 3-D seismic surveys in this
oil-prone area. These surveys have
identified more than 50 geological
prospects that are attractive to the
company's geoscientists. After an ag-
gressive land acquisition campaign
and initial drilling success in fiscal
1996, Chesapeake plans to signifi-
cantly expand its drilling and seismic
activities in the Lovington area in fis-
cal 1997.
AREAS OF OPERATION
Arkoma Basin
Chesapeakehas initiated a seis-
mic and leasehold acquisition
program in the geologically
complex and lightly-explored south-
ern portion of the Arkoma Basin in
southeastern Oklahoma.
The company has developed
Jackfork and Spiro prospects in the
Arkoma on the belief that recent de-
velopments in 3-D seismic technol-
ogy and in drilling and completion
techniques can provide attractive
drilling opportunities. Chesapeake's
Arkoma prospects target gas reserves
from multiple payzones at depths
from 4,000 to 16,000 feet. Through
fiscal 1996, the company had drilled
15 Arkoma wells. Chesapeake plans
to drill 4-5 wells in fiscal 1997 and is
evaluating several 3-D seismic oppor-
tunities that could increase our drill-
ing efforts in this area.
Williston Basin Lovington Arkoma Basin
Drilled 'Wells 15
Undrilled Locations 75