Giant Gas Well in Beckham Co. Makes Royalty Owners Rich!

Chesapeake is making royalty owners rich in Beckham County with their big gas wells.  For instance Royalty Owners have received 65 million dollars in royalty off one well with no end in sight.

Chesapeake gas well hits major milestone

OKLAHOMA CITY – One of Chesapeake Energy Corp.’s natural gas wells in western Oklahoma has hit a production milestone achieved only six times in the state’s history, the company said Monday.

Oklahoma City-based Chesapeake said the Buffalo Creek 1-17 well in the Anadarko Basin in Beckham County recently surpassed cumulative gross production of more than 60 billion cubic feet of natural gas.

Chesapeake began drilling the well in the Cunningham Sand of the Deep Springer formation in May 2002 and started selling gas from the well that December. The well produced an average of about 41 million cubic feet of natural gas per day during its first two years and is still producing about 8 million cubic feet of gas per day.

The company has spent about $9.9 million to drill and operate the well, which has produced total gross revenue of about $320 million. Of that, about $65 million has been paid to royalty owners and $15 million has been paid in state severance tax.

Chesapeake has an 82.6-percent working interest and a 65.8-percent net revenue interest in the well. Chief Executive Officer Aubrey McClendon said Chesapeake now operates four of the six most prolific gas wells ever drilled in Oklahoma.

The Beckham County well’s success led to the company owning the largest leasehold position in the Anadarko Basin, McClendon said.

“This industry-leading leasehold position has proved to be exceedingly valuable as unconventional plays such as the Granite Wash, Cleveland and Tonkawa plays have emerged in areas in and around our traditional strongholds of conventional Anadarko Basin production,” McClendon said.

Chesapeake is the second-largest producer of natural gas in the U.S.

– Associated Press

Advertisements
This entry was posted in Business Law, Oil and Gas Law, Real Estate Law. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s