Evaporative Ponds 2

Evaporative Ponds

Chesapeake Declares Wyoming Oil Economical

This piece follows up on one I wrote back in early February commenting on Chesapeake Energy Corporation’s (NYSE:CHK) Powder River Basin ambitions. The main idea is that by restarting drilling activity in the area, Chesapeake Energy Corporation may uncover its next billion dollar divestment opportunity, and recent operational updates paint a favorable picture (with caveats).

Only Chesapeake

Leave it to Chesapeake to bring one well online in a play and declare it insanely economical right away. Management’s latest forecast for the Turner play in Wyoming’s Powder River Basin is that when realizing $35 per barrel of oil (this is a crude heavy play), those wells break even on an incremental basis.

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