It's been my experience that these archived conference calls are difficult to find after a few days; you may want to listen to it as soon as possible.
The early comments explain why Jim Cramer is so bullish on CHK.
I do not hold shares in CHK so I have no dog in this fight. Nevertheless, it is very, very exciting.
Listening to this conference call, and recalling a story that Venezuela oil reserves are now larger than Saudi Arabia's reserves suggest to me, that with regard to energy, that this decade (2011 - 2021) will be all about the western hemisphere as Saudi's role falls.
Data points:
- Venezuela reserves exceed those of Saudi Arabia.
- Mideast conflict likely to worsen this decade.
- Canadian oil sands. Oil will probably go to China when US stops the Keystone XL.
- Bakken, Niobrara, Eagle Ford.
- Brazil.
- CHK's major discovery in Ohio.
- EOR in Texas.
Based on 2 years of proprietary petrophysical and engineering research, McClendon expects the Utica play “will be economically superior to the Eagle Ford shale” in South Texas for his company.Shovel-ready jobs; it's a pity the administration cannot embrace the energy resources of this country.
Chesapeake’s data on the Utica includes 2,000 well logs and petrophysical data on 200 wells.
Chesapeake has 1.25 million net leasehold acres in the Ohio Utica where it is running five operated rigs. The company expects to have eight Utica rigs by the end of 2011, 16-20 rigs by yearend 2012, and 40 rigs by yearend 2014. McClendon said Chesapeake has spent $1.5-2 billion on leases there and continues to acquire more acreage.
McClendon said Chesapeake is seeking a joint venture partner or other financial alternatives for its Utica operations. “Any solution will have upfront cash,” he said.
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