Chesapeake reduces 2015 capital budget to $3.5-4 billion

In response to lingering low oil and gas prices, Oklahoma City independent Chesapeake Energy Corp. has reduced its 2015 capital budget to $3.5-4 billion, which is a $500 million reduction from its previous guidance of $4-4.5 billion (OGJ Online, Feb. 25, 2015).

Chesapeake plans to operate 25-35 rigs in 2015, which represents a decrease of 55% from an average of 64 rigs in 2014. The company intends to spud and connect to sales about 520 and 650 gross operated wells, respectively, in 2015.

As a result, the company is lowering its targeted 2015 production to 231-236 million boe, or average production of 635,000-645,000 boe/d, which represents 1-3% production growth over the prior year after adjusting for 2014 asset sales.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...