Chesapeake Fetches $12,000 an Acre in Sale of Assets Which Cost Them as Little as $5 an Acre
Northern Panhandle mineral owners receiving royalty checks from Chesapeake Energy should see Southwestern Energy Co. assume the payments, as the Houston-based firm finalized a $5 billion deal for 413,000 acres in West Virginia and Pennsylvania last week.
That means the lease contracts Chesapeake acquired for Marcellus and Utica drilling over the past several years in northern West Virginia, some of which paid mineral owners as little as $5 per acre, fetched the Oklahoma City-based firm more than $12,000 per acre.
When Chesapeake and Southwestern officials announced the planned deal in October, they agreed on a selling price of $5.4 billion. However, the firms reduced the final price by $400 million when Southwestern signed a waiver agreeing not to sue Chesapeake for "title defects and environmental liabilities."Read more of this article by clicking right here.
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