20.12.2016, 18:29
Chesapeake sells more Haynesville acreage for $465mn
OREANDA-NEWS. Chesapeake is selling acreage in the Haynesville shale area of Louisiana for $465mn, its second from the same basin this month, to repay debt.
The latest deal includes about 41,500 net acres and 326 operated and non-operated wells currently producing about 50mn cf/d (1mn m?/d), net to Chesapeake. The buyer is Covey Park Energy, a private exploration and production company backed by private equity firm Denham Capital.
The earlier deal, announced on 5 December, was for $450mn, included 78,000 net acres, and an output of 30mn cf/d. The buyer was not disclosed. Both deals are expected to close in the first quarter of next year.
With the latest deal, Chesapeake exceeded its 2016 asset sales goal by $500mn, to $2.5bn.
"We will continue to pursue opportunities to strengthen our balance sheet in 2017," chief executive Doug Lawler said in a statement. "Upon closing, this strong bid for our second Haynesville package …will position Chesapeake with significant liquidity as we begin a new year."
Chesapeake's net long-term debt fell to $9bn as of the end of the third quarter, down from $10.3bn at the end of 2015.
Chesapeake, once a poster child for the excesses of the US shale boom, is implementing a series of measures to shore up its balance sheet and pay down the billions of debt taken in part to fund an asset acquisition spree.
The latest deal includes about 41,500 net acres and 326 operated and non-operated wells currently producing about 50mn cf/d (1mn m?/d), net to Chesapeake. The buyer is Covey Park Energy, a private exploration and production company backed by private equity firm Denham Capital.
The earlier deal, announced on 5 December, was for $450mn, included 78,000 net acres, and an output of 30mn cf/d. The buyer was not disclosed. Both deals are expected to close in the first quarter of next year.
With the latest deal, Chesapeake exceeded its 2016 asset sales goal by $500mn, to $2.5bn.
"We will continue to pursue opportunities to strengthen our balance sheet in 2017," chief executive Doug Lawler said in a statement. "Upon closing, this strong bid for our second Haynesville package …will position Chesapeake with significant liquidity as we begin a new year."
Chesapeake's net long-term debt fell to $9bn as of the end of the third quarter, down from $10.3bn at the end of 2015.
Chesapeake, once a poster child for the excesses of the US shale boom, is implementing a series of measures to shore up its balance sheet and pay down the billions of debt taken in part to fund an asset acquisition spree.
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