Integrated energy company Chesapeake Energy Corporation (CHK) announced that its Anadarko Basin’s Buffalo Creek 1-17 well has generated a record gross production of more than 60 billion cubic feet of natural gas.
The company, holding an 82.6% working interest and a 65.8% net revenue interest, began operating the well in May 2002.
The well, located in Beckham County, was drilled to a total depth of approximately 21,000 feet at the Cunningham Sand of the Deep Springer formation. During the first two years of operation, the well recorded an average of about 41 million cubic feet of natural gas per day, while it is still producing about 8 million cubic feet of gas a day.
Chesapeake incurred total spending of $8.5 million to drill and complete the well, while total gross revenue was approximately $320 million, of which approximately $65 million was paid to royalty owners and approximately $15 million advanced as state severance tax.
Management stated that Buffalo Creek 1-17 is only the sixth well to hit such a record output level. The company currently holds operational interest in four of six such natural gas wells ever drilled in Oklahoma. With already three operational rigs in the basin, Chesapeake targets to spud at least 185 wells in the 75,000 net acres of the Deep Springer leasehold, going forward.
Oklahoma-based Chesapeake is engaged in acquisition, development, and production of onshore U.S. natural gas resources. The company has also demonstrated considerable drilling prowess, capitalizing on its extensive inventory of acquired undeveloped acreage to make substantial reserve additions.
We believe that Chesapeake’s focus on shale gas plays will render the momentum to monetize these assets more effectively and efficiently, thereby boosting returns. Given its industry leading growth profile, competitive cost structure and management’s track record of outperformance, Chesapeake is more advantageously placed than many of its peers such as BP plc (IRWD), are looking to file for both indications.
Forest Labs and partner Pierre Fabre presented positive preliminary top-line results on levomilnacipran from a phase III study for the treatment of adults with major depressive disorder. Patients on levomilnacipran (all dose groups) achieved a statistically significant improvement compared to placebo.
Neutral on Forest Labs
We currently have a Neutral recommendation on Forest Labs, which carries a Zacks #3 Rank (short-term “Hold” rating). While products like Namenda, Bystolic and Savella should continue performing well, we remain concerned about long-term growth at Forest Labs, especially from 2012 when Lexapro is exposed to generic competition. However, we are pleased to see the company’s progress with its pipeline.
FOREST LABS A (FRX): Free Stock Analysis Report
IRONWOOD PHARMA (IRWD): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment