Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) reports its second quarter Haynesville operations.

During the quarter, the company completed the CLD 23 H-1 in Caddo Parish, Louisiana, which commenced production on June 22 and achieved a peak rate of 29.1 million cubic feet of gas equivalent per day and a pipeline-constrained first 30-day average rate of 15.3 million cubic feet of per day.

The Frith 29 H-1 in De Soto Parish, commenced production on June 27, and achieved a pipeline-constrained peak rate of 23.7 million cubic feet equivalent per day and a pipeline-constrained first 30-day average rate of 14.2 million cubic feet equivalent per day.

The Chesapeake Royalty LLC 30 H-1 in De Soto Parish, LA commenced production on June 27, 2009 and achieved a pipeline-constrained peak rate of 22.6 million cubic feet equivalent per day and a pipeline-constrained first 30-day average rate of 15.2 million cubic feet equivalent per day.

Chesapeake now owns approximately 510,000 net acres of leasehold in the Haynesville shale play, an increase of approximately 40,000 net acres since March 31. Chesapeake and its 20% partner, Plains Exploration & Production Co., Houston, (NYSE: PXP) (which owns approximately 113,000 additional net acres), have drilled and completed 74 Chesapeake-operated horizontal wells in the Haynesville play and continue to experience outstanding drilling results. During the second quarter, Chesapeake’s average daily net production of 135 million cubic feet in the Haynesville increased approximately 85% during the 2009 first quarter and approximately 865% during the 2008 second quarter.

Chesapeake is currently producing approximately 175 million cubic feet equivalent net per day (285 million cubic feet equivalent gross operated) from the Haynesville and anticipates exceeding approximately 275 million cubic feet equivalent net per day (575 million cubic feet equivalent gross operated) by year-end 2009 and approximately 450 million cubic feet equivalent net per day (1.025 billion cubic feet equivalent gross operated) by year-end 2010.

In the Marcellus shale in West Virginia, Pennsylvania and New York, Chesapeake completed the Vargson 1H well in Bradford County, which commenced production on April 13 and achieved a peak rate of 7 million cubic feet equivalent per day and a first 30-day average rate of 4.6 million cubic feet equivalent per day.

The Evanchick 2H in Bradford County commenced production on May 6 and achieved a peak rate of 6.9 million cubic feet equivalent per day and a first 30-day average rate of 5.3 million cubic feet equivalent per day.

The James Messenger 3H in Wetzel County, WV, commenced production on April 10 and achieved a peak rate of 5.1 million cubic feet equivalent per day and a first 30-day average rate of 3.4 million cubic feet equivalent per day.

Since Jan. 1, 2008, Chesapeake has drilled and completed 25 company-operated horizontal wells in the Marcellus. Having increased its leasehold ownership by 150,000 net acres to 1.45 million net acres during the second quarter, Chesapeake has solidified its position as the largest leasehold owner in the Marcellus shale play. The company’s joint venture partner, StatoilHydro, Oslo, Norway, (NYSE: STO) owns approximately 625,000 net acres of additional Marcellus leasehold. Chesapeake remains the most active driller and expects to become the largest gross producer of natural gas from the play by year-end. During the 2009 second quarter, Chesapeake’s average daily net production of approximately 30 million cubic feet equivalent in the Marcellus increased approximately 155% over the 2009 first quarter and approximately 600% over the 2008 second quarter.

In the Barnett shale in North Texas, Chesapeake completed the Armet Dale Street 7H in Tarrant County, which commenced production on June 3, and achieved a peak rate of 7.8 million cubic feet equivalent per day and a first 30-day average rate of 4.4 million cubic feet equivalent per day.

The Chevy 2H in Johnson County commenced production on June 12 and achieved a peak rate of 7.4 million cubic feet equivalent per day and a first 30-day average rate of 5.8 million cubic feet equivalent per day.

The Gann 4H in Johnson County commenced production on June 5 and achieved a peak rate of 7 million cubic feet equivalent per day and a first 30-day average rate of 5.4 million cubic feet equivalent per day.

Chesapeake also drilled two of the best three wells ever drilled in the Barnett, the Donna Ray 1H and Donna Ray 3H. These two wells averaged 9.6- and 8.8 million cubic feet equivalent per day, respectively, during their first 30 days of production.

Chesapeake is the second-largest producer in the Barnett, the most active driller and the largest leasehold owner in the Core and Tier 1 sweet spots of Tarrant and Johnson counties. During the second quarter, Chesapeake’s average daily net production of approximately 650 million cubic feet equivalent in the Barnett was flat compared to the 2009 first quarter and increased approximately 40% over the 2008 second quarter.

Chesapeake is currently producing approximately 655 million cubic feet equivalent net per day (925 million cubic feet equivalent gross operated) from the Barnett and anticipates reaching approximately 725 million cubic feet equivalent net per day (1.05 billion cubic feet equivalent gross operated) by year-end 2009 and approximately 750 million cubic feet equivalent net per day (1.1 billion cubic feet equivalent gross operated) by year-end 2010.

In the Fayetteville shale in Arkansas, Chesapeake completed the Maxwell 8-8 4-34H in White County, which commenced production on May 29, and achieved a peak rate of 5 million cubic feet equivalent per day and a first 30-day average rate of 3.5 million cubic feet equivalent per day.

The Terry Bomar 8-9 3-17H in White County commenced production on April 27 and achieved a peak rate of 3.5 million cubic feet equivalent per day and a first 30-day average rate of 2.8 million cubic feet equivalent per day.

The Don Shipp 9-15 1-11H in Conway County commenced production on April 18 and achieved a peak rate of 4.1 million cubic feet equivalent per day and a first 30-day average rate of 2.4 million cubic feet equivalent per day.

Chesapeake chief executive Aubrey K. McClendon says, “Our drilling activities in each of our Big 4 shale plays continue to generate outstanding results and we have raised our recovery expectations in the Marcellus and Fayetteville Shale plays. Additionally, our Colony Granite Wash and Texas Panhandle Granite Wash plays are delivering exceptional rates of return even in the current low commodity price environment. We have been very successful in reducing our drilling and operating costs and are also benefiting from substantially lower oilfield service prices relative to year-ago levels.”

Chesapeake is the second-largest leasehold owner in the core area of the Fayetteville play with 440,000 net acres. During the second quarter, Chesapeake’s average daily net production of 220 million cubic feet equivalent in the Fayetteville increased approximately 15% over the 2009 first quarter and approximately 60% over the 2008 second quarter. Chesapeake is currently producing approximately 240 million cubic feet equivalent net per day (325 million cubic feet equivalent gross operated) from the Fayetteville and anticipates reaching approximately 300 million cubic feet equivalent net per day (400 million cubic feet equivalent gross operated) by year-end 2009 and approximately 375 million cubic feet equivalent net per day (500 million cubic feet equivalent gross operated) by year-end 2010.

Chesapeake has oil and gas properties in Oklahoma, Texas, Alabama, Arkansas, Louisiana, Kansas, Montana, Colorado, North Dakota, Nebraska, New Mexico, West Virginia, Kentucky, Ohio, New York, Maryland, Michigan, Mississippi, Pennsylvania, Tennessee, Utah, Virginia and Wyoming.