Wrong on a couple of counts. One, the 0.1 bcf/d reduction in production is CHK's net production number. CHK's working interest in its wells is just under 50%. Which means, on a gross basis that translates into about 0.21 bcf/d. Second, these numbers assume the shut-in is lifted by October, which means the production reduction YoY over the next 9 months would be ~0.28 bcf/d. Third, it is erroneous to compare with 2011 average production since CHK has been steadily growing its production through the last year. A more relevant measure would be to compare with FY 11 exit rate - based on that the impact of shut-in would be close to 0.6 bcf/d.
No announcement yet.
$1 Nat Gas? Really?