Developments: CNOOC, with a combined market value $100 billion on the NYSE and the Hang Seng, recorded a 48% year-over-year increase in third quarter net oil and gas production. The surge was mainly led by a production ramp up in projects that came on stream since 2009 and the outperformance of existing fields and contributions from newly acquired projects. For the same period, the company's revenue was up 63.8%.
CNOOC has estimated its full-year production target in the range of 319-329 million barrels of oil equivalent. Going forward, the company will highly benefit from its recent $1.1 billion investment for a 33.3% stake in Chesapeake Energy's (CHK - Get Report) Eagle Ford shale. With the current utilization of 10 operating rigs, CNOOC's stake in Chesapeake is likely to increase its drilling activity to 12 operated rigs by the end of 2010, 31 rigs by end 2011, and approximately 40 rigs by year-end 2012. Further, around 900 wells are expected to be drilled by year-end 2012.