When the New York Times reported over the weekend that natural gas companies and their huge bets on wells was noted as being “the gas may not be as easy and cheap to extract from shale formations deep underground as the companies are saying.”
Chesapeake Energy Corporation (NYSE: CHK) has responded with what is effectively nothing short of a denial. CEO Aubrey McClendon issued a press release today noting that the company stands behind all of its statements regarding natural gas discoveries and regarding production targets.
It called the New York Times report both inaccurate and misleading over an exaggeration of natural gas shale well productivity and industry reserve estimates. The company also noted that numerous available sources verify the estimates.
One note that stood out perhaps the most from McClendon was stated, “Our industry’s operations and investment decisions are informed and guided by the best geoscientific, petrophysical and 3-D seismic data available and analyzed by some of the best drilling, completion, production and reservoir engineers in the business. The results of the industry’s efforts to revolutionize natural gas development and production have been extraordinary and continue to improve.”
Now an article from Forbes is also derailing what the New York Times reported. It calls it “All Hot Air.”
Chesapeake is currently down 0.6% at $27.85 but it opened much lower at $27.33. The 52-week trading range is $19.68 to $35.95.
JON C. OGG