Chesapeake to sell second Haynesville shale position for $465 million

12/21/2016

OKLAHOMA CITY -- Chesapeake Energy has signed an agreement to sell a portion of the company's acreage and producing properties in its Haynesville shale operating area in northern Louisiana for approximately $465 million to an affiliate of Covey Park Energy LLC.

The sale includes approximately 41,500 net acres and 326 operated and non-operated wells currently producing approximately 50 MMcfgd, net to Chesapeake. The company expects this transaction to close in the first quarter of 2017.

Doug Lawler, Chesapeake's CEO, said, "We are pleased with the results of our non-core Haynesville sales packages, totaling projected gross proceeds of $915 million, while divesting of only approximately 80 MMcf of daily gas production and approximately $50 million of estimated 2017 operating income. Upon closing, this strong bid for our second Haynesville package, along with our recent new issue and tender, will position Chesapeake with significant liquidity as we begin a new year.”

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