Discovery drives society. Whatever we humans have achieved is the result of one discovery after other. The same applies to companies. They have to innovate and discover new sources of revenue to survive the cut-throat competition. Second-largest producer of natural gas Chesapeake
Chesapeake reported positive results from its initial horizontal oil drilling results in both the dry gas and wet gas phases of the Utica Shale region. In addition, the company also increased its operational efficiency and achieved new production records. Net production exceeded 3.45 billion cubic feet of natural gas equivalent (bcfe) per day. The company also expects to increase its net liquid production by 50% by the end of 2012. Chesapeake holds a lease of 1.25 million acres in the Utica Shale area, mainly focusing on the wet gas phase.
Now let's develop it
The Ohio Geological Survey predicts that as much as 8.2 billion barrels of oil equivalent (boe) may be present at Ohio's Utica Shale area. The presence of natural gas is expected to be somewhere between 2 trillion cubic feet to a whopping 69 trillion cubic feet.
This huge presence of oil and gas has left big players like ExxonMobil, Hess
Winning is about making the right discovery at the right place at the right time to take advantage of it. Chesapeake's presence in one of the richest oil and natural gas reserves has won half the battle for the company, and its production success solidifies its position. This stock looks promising.
Fool contributor Abantika Chatterjee does not own shares of any of the companies mentioned in this article. The Motley Fool owns shares of Devon Energy. Motley Fool newsletter services have recommended buying shares of Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.