HOUSTON, May 3 (Reuters) - Chesapeake Energy Corp, one of the most active U.S. natural gas drillers, said on Monday its production rose 9 percent in the first quarter and it continues to build up its oil acreage holdings.
Chesapeake and other U.S. exploration companies are working to boost output of oil as the price of crude climbs while natural gas prices remain burdened by heavy supplies.
Chesapeake said it now holds nearly 2 million acres located in areas that have oil or natural gas with a high liquids content like the Eagle Ford Shale in south Texas.
Chesapeake said it expects to increase its oil and natural gas liquids production to more than 100,000 barrels per day, or 15 percent to 20 percent of its total production, by year-end 2012. Natural gas currently accounts for the bulk of the company's output.
The company, based in Oklahoma City, said in an operational report that its first-quarter daily production averaged 2.586 billion cubic feet equivalent. Production was down 1 percent from the fourth quarter.
Chesapeake said it expects production growth of about 8 percent to 10 percent this year. In 2011, the company now expects production growth of 16 percent to 18 percent, up slightly from a prior forecast for an increase of 15 percent to 17 percent.
The company, which is due to report first-quarter earnings on Tuesday after the close of regular trading, said its proved reserves grew 4 percent to 14.8 trillion cubic feet equivalent.
Shares of Chesapeake were flat with their New York Stock Exchange close of $24.08 in after-hours trading.
(Reporting by Anna Driver in Houston, additional reporting by Braden Reddall in San Francisco; editing by Carol Bishopric) Keywords: CHESAPEAKE/ (anna.driver@thomsonreuters.com; 1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Chesapeake and other U.S. exploration companies are working to boost output of oil as the price of crude climbs while natural gas prices remain burdened by heavy supplies.
Chesapeake said it now holds nearly 2 million acres located in areas that have oil or natural gas with a high liquids content like the Eagle Ford Shale in south Texas.
Chesapeake said it expects to increase its oil and natural gas liquids production to more than 100,000 barrels per day, or 15 percent to 20 percent of its total production, by year-end 2012. Natural gas currently accounts for the bulk of the company's output.
The company, based in Oklahoma City, said in an operational report that its first-quarter daily production averaged 2.586 billion cubic feet equivalent. Production was down 1 percent from the fourth quarter.
Chesapeake said it expects production growth of about 8 percent to 10 percent this year. In 2011, the company now expects production growth of 16 percent to 18 percent, up slightly from a prior forecast for an increase of 15 percent to 17 percent.
The company, which is due to report first-quarter earnings on Tuesday after the close of regular trading, said its proved reserves grew 4 percent to 14.8 trillion cubic feet equivalent.
Shares of Chesapeake were flat with their New York Stock Exchange close of $24.08 in after-hours trading.
(Reporting by Anna Driver in Houston, additional reporting by Braden Reddall in San Francisco; editing by Carol Bishopric) Keywords: CHESAPEAKE/ (anna.driver@thomsonreuters.com; 1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.