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11 Pages

Chesapeake Energy oil and gas exploration summary

Chesapeake Energy oil and gas exploration summary

Report summary

Chesapeake's strategy has been to enter emerging resource plays early and establish leading positions, either through acquisitions or aggressive grassroots leasing programmes. The company's competitive advantage is being able to leverage its scale and expertise to rapidly grow production and establish itself in a play and then recover a portion of its upfront costs through partnerships. Conventional exploration has played no part in the Chesapeake story. Despite a heavy focus on farm-outs and divestments, Chesapeake retains a large inventory of proved reserves in some of the most prolific resource plays in North America. The Utica, Eagle Ford, and Mid-Continent provide a solid liquids-rich base for growth while large acreage positions in the gas-weighted Marcellus and Haynesville shale plays leave the company heavily exposed to US gas. Over 85% of the organic reserves are weighted towards gas assets. With a current focus on developing assets, there is little exploration under way.

What's included?

This report includes 2 file(s)

  • Chesapeake Energy oil and gas exploration summary PDF - 1017.53 KB 11 Pages, 4 Tables, 14 Figures
  • Chesapeake Energy.xls XLS - 477.00 KB


Affected by supply and demand, the economy of individual countries and technological breakthroughs, oil and gas exploration is an industry in constant motion. The high costs of finding and developing new oil and gas fields that can be commercially developed has created a challenging atmosphere, with explorers increasingly seeing low returns, low value and slow progress.

This Exploration Summary report quantifies the company's exploration volume and value performance over the past 10 years, and reviews its outlook for future success.

Businesses can use this report to get a detailed analysis of this company, what exploration areas they're involved in, what wells to watch and how well placed they are. It will help you understand company performance and shows how the best explorers have achieved their success.

Wood Mackenzie benchmarks exploration results for over 40 companies. Our analysts provide accurate information on the cost of exploration compared to the value of discoveries so that you can develop profitable strategies. We are the established global industry standard for oil and gas exploration performance.

  • Executive summary
  • Strategy
    • Upstream strategy and exploration outlook
    • Evolution of exploration strategy
  • Investment and costs
  • Reserves and resources
  • Production
  • Valuation
    • Casting a wide net to gain first mover advantage in shale gas
    • Positive returns through well-timed partnerships and divestments

In this report there are 18 tables or charts, including:

  • Executive summary
    • Basins drilled and major discoveries 2004-2013
    • Ten year performance summary
  • Strategy
    • Strategy: Table 1
  • Investment and costs
    • Exploration & appraisal spend and reinvestment
    • Exploration & appraisal spend by water depth
    • Exploration & appraisal spend by basin maturity
    • Discovery costs by water depth
  • Reserves and resources
    • Key organic unconventional plays (2004 to 2013)
    • Volumes discovered by year
    • Volumes discovered by water depth
    • Volumes discovered by country
    • Volumes discovered by basin
  • Production
    • Production from new field discoveries and organic unconventionals
  • Valuation
    • Full-cycle economics
    • Full cycle value creation by year, with uncons & DROs
    • Exploration returns by year, with uncons & DROs
    • Value creation by reserve category
    • Value creation by water depth
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