OKLAHOMA CITY (AP) - Chesapeake Energy Corp. on Monday boosted its
production forecasts for 2008 and 2009, citing higher recovery expectations and
increased drilling activity levels.
The natural-gas producer said it now expects its average daily production
rate to increase in 2008 by about 21 percent over its 2007 average rate to 2.37
billion cubic feet of natural gas equivalent per day.
Production in 2009 is expected to grow by about 16 percent to 2.74 billion
cubic feet of natural gas equivalent per day, Chesapeake said.
The company had previously projected growth levels of 10 percent in 2008 and
12 percent in 2009.
Also on Monday, Chesapeake said it plans to increase its drilling and
leasehold expenditures by $275 million in 2008 and $675 million in 2009.
In addition, Chesapeake said it added to its 2008 and 2009 natural gas
hedging position, and began to hedge part of its expected 2010 production,
citing strong natural-gas prices in early March.
Chesapeake shares rose 64 cents to $46.65 in aftermarket trading, after
rising 72 cents to $45.01 in the regular session.
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