Chesapeake Energy Corporation unveiled plans Wednesday to sell assets in the Northern Eagle Ford shale and Haynesville shale to a subsidiary of EXCO Resources Inc. for approximately $1 billion.
The sale is the latest in Chesapeake's 2013 asset sales as the company seeks to reduce its long-term debt and enhance its financial liquidity.
EXCO subsidiary EXCO Operating Company LP will acquire approximately 55,000 net acres in Zavala, Dimmit, La Salle and Frio counties, Texas. The acreage includes 120 producing wells with average net daily production in May of approximately 6,100 barrels of oil equivalent.
In the Haynesville play, EXCO will buy Chesapeake's operated and non-operated interests in approximately 9,600 net acres in Desoto and Caddo parishes, Louisiana. Eleven Chesapeake-operated units and 42 units operated by EXCO are included. Average net daily production from these properties in May was approximately 114 million cubic feet of natural gas equivalent per day.There is still no mention of Chesapeake's assets in the Williston Basin.
This story came out during the trading day. CHK was up slightly today but not remarkably.
There are many, many other stories concerning this most recent development, including:
- why is Chesapeake selling oil-heavy assets? -- Motley Fool's explanation -- CHK will be focused on better plays in other counties in Texas (also Eagle Ford).
No comments:
Post a Comment