Two transactions to monetize a portion of Chesapeake Energy Corp.’s 1.5 million net acres in the Utica Shale of Ohio are expected to give the independent about $3.4 billion in proceeds, CEO Aubrey McClendon said late Thursday.
In the biggest transaction, the Oklahoma City-based producer has a letter of intent (LOI) with an undisclosed “international major energy company” under which the foreign company would acquire an undivided one-quarter stake in 650,000 net acres of the Utica play in the wet natural gas area. Of the acreage to be provided through the joint venture (JV), Chesapeake owns about 570,000 net acres while 80,000 net acres are owned by Houston-based EnerVest Ltd. and its affiliates (see related story).
The JV transaction, which would cover all or a portion of 10 counties in eastern Ohio, is worth about $15,000/acre net, or about $2.14 billion to Chesapeake and $300 million to EnerVest.
“Through the industry JV, we will be able to recover more than our total leasehold investment in the entire Utica Shale play while only selling approximately 142,500 net acres of our 1.5 million net acres of Utica Shale leasehold,” said McClendon.
(To read the full story go to shaledaily.com).
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