Chesapeake Energy Corp. on Wednesday said it will shut-in a portion of its unhedged near-term natural gas production due to low wellhead natural gas prices.
Effective Oct. 1, Chesapeake will temporarily shut-in about 100 million cubic feet per day of net natural gas production (about 125-150 mmcf per day gross), or about 6 percent of the company's net oil and natural gas production, in various areas of operations in the southwestern U.S. until natural gas prices recover from the recent low levels.
The company said it will bring these unhedged natural gas production volumes back on stream as the prices improve. It is likely to reduce its 2006 fourth-quarter production forecast range, it added.
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