Jefferies: Chesapeake Energy Announces Utica's Well Competion

Jefferies released a research report on Chesapeake Energy CHK announcing Utica's completion of their first horizontal well. In the report, Jefferies writes, “According to Ohio Dept of Natural Resources, Chesapeake's first horizontal Utica well, the Buell #8H, tested 6.5 mmcfepd (6.2 mmcfpd of natural gas and 59 bopd of condensate). Condensate yield is similar to the wet area of the Marcellus in southwest Pennsylvania. The Buell well is located in central Harrison County within the wet gas window of the Utica (see map). It was drilled a vertical depth of ~8,400' with another ~6,800' of horizontal lateral.” Jefferies has a Buy rating and a $43.00 price target on Chesapeake Energy, which closed yesterday at $31.51.