Chesapeake looks to Texas oil

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OKLAHOMA CITY, June 4 (UPI) -- An oil discovery in the Texas Panhandle could be one of the better performing wells drilled in the Lower 48, the top executive at Chesapeake Energy said.

Chesapeake announced its Thurman Horn 406H well in the Hogshooter Formation in the Texas Panhandle and western Oklahoma produced 5,400 barrels of oil per day during its first eight days of operation.

Chesapeake Chief Executive Officer Aubrey McClendon said, in a statement, that production results indicate Thurman Horn 406H may be "one of the best oil wells drilled onshore in the Lower 48 in the past several decades."

Chesapeake has struggled amid the natural gas boom in the United States as more reserves push prices lower.

McClendon said the Hogshooter Formation could have a "transformational" effect on the company's financial performance.

"We expect this new Hogshooter discovery to provide a significant boost to Chesapeake's focus on harvesting its existing assets for growth and value creation rather than on pursuing new leasehold," he said.

Meek 41 9H, a second well in the formation, produced an average of 1,300 barrels of oil during the first 27 days of operation.