Chesapeake to Get $1B for Texas, Louisiana Assets
OKLAHOMA CITY -- Chesapeake Energy Corp. announced this morning that is has executed agreements to sell assets in the Texas and Louisiana to EXCO Operating Co. LP a subsidiary of EXCO Resources Inc. for aggregate proceeds of approximately $1 billion, of which approximately 90% will be received upon closing.
Doug Lawler, Chesapeake’s Chief Executive Officer, commented, “Today’s announcement brings our year-to-date asset sales signed or closed to approximately $3.6 billion, which, combined with forecasted net operating cash flow, enables Chesapeake to fully fund its 2013 capital expenditure budget,” says CEO Doug Lawler. “Additional asset sales contemplated for later this year may reduce long-term debt and further enhance our financial liquidity.”
In the Northern Eagle Ford Shale, EXCO has agreed to acquire approximately 55,000 net acres in Zavala, Dimmit, La Salle and Frio counties, Texas, including approximately 120 producing wells with average net daily production in May of approximately 6,100 barrels of oil equivalent.
In the Haynesville Shale, EXCO has agreed to acquire Chesapeake’s operated and non-operated interests in approximately 9,600 net acres in Desoto and Caddo parishes, Louisiana. Included in the transaction are 11 units operated by Chesapeake and 42 units operated by EXCO. Average net daily production from the Haynesville properties to be sold was approximately 114 million cubic feet of natural gas equivalent during
May.
SOURCE: Chesapeake Energy Corp.
Published by The Business Journal, Youngstown, Ohio.
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