The link is here.
I'm too tired to re-write the story as a new post. Hopefully you can figure out what I'm saying at the link.
A huge "thank you" to the reader who alerted me to the fact that CHK's Nomac 312 was no longer on the active drilling list.
Just a note and maybe an answer to Betty a day or two back.
ReplyDeleteShe stated it makes no sense for Chesapeake to keep drilling if they are dry.
Perhaps an answer: Many of these rigs are contracted out to Chesapeake (Nomac). They are under contract to drill a certain amount of wells. What's the difference if you pay Nomac to drill a dry well (hoping they hit) or pay them the same amount of money to not drill at all? I would always choose the "chance" like any other normal person.
Bruce you also mentioned the depth of one of these formations Chesapeake encountered drilling. Keep in mind just because the formation is wide [thick?], doesn't mean it contains oil. It could be water, sea shells, vegatation, etc., that still hasn't "cooked" into oil. If we come back, in say, another 10 million years, perhaps this may be something. :)
Great post, thank you.
DeleteI believe Nomac is a wholly-owned subsidiary of Chesapeake.
http://www.chk.com/affiliates/chesapeake-oilfield-services/nomac/Pages/default.aspx
You are absolutely correct: the thickness of a formation is only one of five or six parameters that will determine the play's potential. All things being equal, thickness is a huge, huge deal.
I touch on this in several posts, but this might be one of the better posts:
http://milliondollarway.blogspot.com/2011/11/are-they-paying-14000acre-for-three.html