In June, Chesapeake Energy completed its previously announced acquisition of publicly-traded Canaan Energy Corporation and its approximate 100 bcfe of reserves for a total cost of approximately $125 million.
In addition, the company has recently reached agreements to acquire privately-held Focus Energy Corporation and its related partnerships, the Mid-Continent assets of publicly-traded EnCana Corporation, the Mid-Continent assets of a publicly-traded utility and the Anadarko Basin assets of a publicly-traded pipeline company. The cost of these four new Mid-Continent gas acquisitions will be approximately $165 million.
The transactions will increase Chesapeake's reserves by approximately 130 bcfe to more than 2.1 tcfe and daily production by approximately 28 mmcfe to more than 500 mmcfe. In addition, the company will acquire new drillsites and additional interests in certain existing drillsites. Closing for all four transactions should occur in the third quarter and the company intends to use either its bank credit facility or long-term debt markets to finance the transactions.
