Chesapeake Energy will identify its joint venture partner in the Utica shale when the agreement is signed later this year.
Chesapeake Energy officials expect to identify its Utica shale joint venture partner when the agreement is completed later this year.
The company announced a joint venture with an “undisclosed international major energy company” on Thursday. The company also has entered a financial agreement with EIG Global Energy Partners. The two deals are helping Chesapeake finance its drilling programs in Ohio’s Utica shale formation.
During a conference call with investment firms Friday morning, Chesapeake Chief Executive Officer Aubrey K. McClendon said its Utica shale joint venture partner is “large, well respected, well known” and will be revealed when the agreement is closed. The company expects to complete the deal in mid-December.
It would be the seventh joint venture for Chesapeake, and the company is confident the deal will be completed, McClendon said. “We get our deals done, and we bring them to the finish line.”
McClendon said the company now has seven Utica shale wells producing, but he declined to offer details on production. The company reported production numbers on four Utica wells — including two in Carroll County — in September, and that information drove up leasing prices, he said.
But he did state: “The Utica is the biggest thing to hit Ohio since the plow.”
Chesapeake expects Utica wells to produce oil and natural gas liquids — ethane, butane and propane — along with natural gas, McClendon said. The joint venture partner is focused on liquid natural gas production.