DNR & EOG getting help from CHK

[dan_s]

The takeaway point is that CHK's increased drilling program here will prove up acreage for Sweet 16 members EOG and DNR.
Dan

Chesapeake Energy (NYSE:CHK) is developing several Mississippian and Pennsylvanian tight gas formations in the Anadarko Basin. The goal is to transform into a more balanced exploration and production company with a significant proportion of production and reserves coming from oil and natural gas liquids.

Cleveland and Tonkawa
The company has 500,000 acres with exposure to the Cleveland and Tonkawa Pennsylvanian age formations in the Panhandle regions of Texas and Oklahoma. It's here that, as of June 30, 2010, Chesapeake Energy has 30 million barrels of oil equivalent (BOE) of proved reserves and produced an average of 8,000 BOE per day in September 2010.

Chesapeake Energy expects future production from these plays to be 31% natural gas liquids and 28% from oil, with natural gas making up the remainder. In 2011, the company intends to increase its rig count from six to an average of nine and drill 85 wells in 2011 .

EOG Resources (NYSE:EOG) has 60,000 net acres prospective for the Cleveland formation, and the company reported several successful wells during the first quarter of 2010. Another company with Cleveland exposure is Denbury Resources (NYSE:DNR), which acquired its acreage through the purchase of Encore Acquisition Company. Denbury resources has been selling off parts of its onshore assets but has not announced any sales of properties here.