February 22, 2012 / 4:30 PM / 6 years ago

Chesapeake says Niobrara, Bakken acres disappoint

Feb 22 (Reuters) - Chesapeake Energy Corp, the second-largest U.S. producer of natural gas, told investors on Wednesday that drilling results in two basins where it has large acreage positions have so far been disappointing.

Aubrey McClendon, Chesapeake’s chief executive officer, told investors on the quarterly earnings call that well results on acreage in the Niobrara Shale in Wyoming and Colorado and in the Bakken field in North Dakota have not met expectations.

“We’re disappointed to date in what we’ve seen with the Bakken,” McClendon said. “I suspect the western part of our acreage will probably work out fine.”

Chesapeake, based in Oklahoma City, Oklahoma, did not pay very much for its Bakken acreage, McClendon said.

Chesapeake has about 400,000 acres in the Bakken and more than 600,000 acres in the Powder River and DJ Basins where the Niobrara is situated.

On Tuesday after the close of regular trading, Chesapeake reported fourth-quarter earnings that were in line with Wall Street estimates.

Shares of Chesapeake were down 2 percent at $24.14 on Wednesday morning on the New York Stock Exchange.

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