By OGJ editors
HOUSTON, July 31 -- Chesapeake Energy Corp., Oklahoma City, plans to be running 25 rigs by the end of 2006 in the Fort Worth basin Barnett shale gas play, up from 15 rigs at present.
The company said it is the play's third most active driller, second largest leasehold owner in the developed "Tier 1" area, and third largest gas producer at 130 MMcfd.
Chesapeake Energy has 594 bcfe of proved undeveloped reserves on its 165,000 net acres of leasehold in the play.
Expected economics are $2.7 million per horizontal well that develops 2.4 bcfe on 55-acre spacing. The company said it could ultimately recover another 3.4 tcf of unproved gas if it drills 2,200 net wells in future years.