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Monday, August 15, 2016

Chesapeake Continues to Sell Off Assets, Reduce Financial Commitments

From Oil & Gas Journal:
Chesapeake Energy Corp., Oklahoma City, has agreed to pay its way out of the Barnett shale in an effort to eliminate future financial commitments in a region it deems uneconomic. The series of deals, expected to close in the third quarter, could ultimately save Chesapeake $1.9 billion. 
Saddle Barnett Resources LLC, a Dallas-based firm backed by First Reserve Corp., has agreed to take Chesapeake’s 215,000 net developed and undeveloped acres and 2,800 operated wells in the North Texas shale gas play. In return, Saddle Barnett Resources will help Chesapeake terminate midstream commitments to Williams Partners LP associated with the acreage. 
Second-quarter production from the acreage averaged 65,000 boe/d, of which 96% was natural gas and 4% natural gas liquids. The expected net production impact to Chesapeake from the deal is 62,000 boe/d. Proved oil and natural gas reserves on the acreage as of Dec. 31 were 81 million boe/d, of which 96% was natural gas and 4% natural gas liquids.
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