Chesapeake Energy Corp. is looking for buyers for three sets of properties throughout the Rocky Mountains and another leasehold in the Woodford Shale of Oklahoma.

In the Rockies, the Oklahoma City-based producer wants to sell a diverse set of operated and nonoperated producing wells and associated leasehold in three packages of properties. The assets include properties located in the White River Dome of the Piceance Basin in north-central Rio Blanco County, CO, and in the Williston Basin of Montana and North Dakota.

Combined, the Rockies assets to be sold include 159 producing properties, 20 proved behind-pipe intervals, seven proved developed nonproducing properties, 17 shut-in wells, nine temporarily abandoned wells, 73 proved undeveloped locations, 72 probable locations and 54 possible locations.

Proved, probable and possible (3P) reserves in the White River Dome Field are estimated to be 143.8 Bcfe. In the Williston Basin, 3P reserves are estimated 36.9 Bcfe. The nonproducing properties to be sold, which are spread across Montana, North Dakota, Wyoming, Nebraska and Colorado, have 3P reserves estimated at 10.2 Bcfe.

December 2007 net production for all of the Rockies properties to be sold is projected to be 860 boe/d and 7.6 MMcf/d, with combined net cash flow of $2.618 million. Chesapeake operates 56 of the Rockies properties to be sold, and those operations would be transferred to the successful bidder, according to Meagher Oil & Gas Properties Inc., which is handling all of the sales for the company.

In the Woodford Shale of the Arkoma Basin, Chesapeake wants to sell its interest in 81,500 net acres that are located in Atoka, Coal, Hughes, McIntosh and Pittsburg counties, OK. The assets include more than 100 producing wells, 16 of which Chesapeake operates. The Woodford production currently is about 6.6 MMcf/d of gas and 6.2 b/d of oil. Produced developed reserves are estimated at 13 Bcf.

The Rockies assets have a bid deadline of Dec. 1. The Woodford Shale assets' bid deadline is Dec. 3. Chesapeake did not indicate how much it expects to recoup from the lease sales. For more information, contact Meagher's Jacques Semple at (818) 481-5900.

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