Chesapeake Energy Sells 98 BCFE of Proved Reserves
Chesapeake Energy Corporation has sold certain Chesapeake-operated long-lived producing assets in the Anadarko and Arkoma Basins in its fourth volumetric production payment transaction (VPP). Through the VPP, Chesapeake conveyed a royalty interest to investors associated with Argonaut Private Equity. The purchase was financed by GS Loan Partners, an affiliate of The Goldman Sachs Group, Inc. (NYSE:GS). The assets include proved reserves of approximately 98 bcfe and current net production of approximately 60 mmcfe per day for proceeds of $412 million, or $4.20 per mcfe. Chesapeake retained drilling rights on the properties below currently producing intervals. The company previously announced its intention to complete a VPP by year-end 2008 as part of its plan to build larger cash reserves over the next two years. The transaction, which closed on December 31, 2008, will be treated as a sale for accounting purposes and the company’s proved reserves will be reduced accordingly. Chesapeake was advised on the transaction by Jefferies Randall & Dewey of Houston, Texas.
Review all our latest Acquisitions and Mergers news
Chesapeake Energy Corporation
Acquisitions & Mergers
Gulf Of Mexico
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More
Join 80,000 oil and gas professionals who receive our weekly newsletter.
You may unsubscribe at any time with one click.
Upcoming OilVoice Training Course
Introduction to Petroleum Systems
Summary Source Rocks, Maturity of Source Rocks, Migration of Petroleum, Reservoirs, Seals and Trapping are all reviewed with respect to their basic physical principles, relative timing and the manners in which they are predicted and evaluated. Duration and Training Method 1 day, lectures broken up ...
All OilVoice Training Courses