Chesapeake Energy (CHK) disclosed additional detail on the Niobrara Shale and the company’s development plans there at an analyst meeting held in October 2010.
Chesapeake Energy drilled and completed the Spillman Draw Unit State 16-1H and reported an initial production rate of 705 barrels of oil equivalent per day. This production was composed of 655 barrels per day of oil and 300,000 cubic feet per day of natural gas.
The Niobrara Shale has a reservoir porosity ranging from 5.5% to 7.5% in the Powder River Basin and from 7% to 9% in the Denver Julesburg Basin. The Niobrara Shale is more pressurized in the Powder River Basin since it is at a deeper depth.
Chesapeake Energy reported that industry wide 33 wells have been drilled to date so far in the Niobrara Shale, and 9 wells are being completed. There have been 175 well permits issued to ten exploration and production companies.