Chesapeake.s Haynesville Sale | Russell T. Rudy Energy LLC
“World Oil” reports that Chesapeake Energy has sold a portion of its acreage and production in North Louisiana’s Haynesville shale. Proceeds from the sale to a private company will total $450 million. Chesapeake is divesting 78,000 net acres, 40,000 of which are considered core acreage. The assets are currently producing approximately 30 million cubic feet of gas per day from 250 wells.
Chesapeake is also trying to sell another 50,000 net acres in the northeastern part of the Haynesville and hopes to consummate that deal in the first quarter of 2017 as well. Even after these planned divestitures, the company will still retain about 250,000 net acres in the core of the Haynesville. In 2017, Chesapeake plans to develop these properties via longer laterals and enhanced completions. If all goes according to plan, this will result in a 13% increase in production from the play.
CEO, Doug Lawler, announced “We are pleased to announce the first of two proposed Hayesville asset sales for $450 million. With this proposed transaction and our previously announced Devonian asset divestiture, the company has reached approximately $2.0 billion gross proceeds from the divestitures either signed or closed in 2016, excluding certain volumetric production payment repurchase transactions. We expect this total to grow in the 2017 first quarter with our second proposed acreage sale in the Haynesville.”
To read the article in its entirety, please go to http://www.worldoil.com/news/2016/12/6/chesapeake-sells-portion-of-haynesville-shale-acreage-for-450-million .
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