Memphis

Chesapeake Energy Corp. added about 13,000 net acres to its Haynesville Shale position in a $263 million agreement with International Paper (IP), based in Memphis, TN. The proceeds are to be used to pay down debt, said IP CEO John Faraci. The transaction is set to close in August. Based on the company’s internal research, Chesapeake’s Haynesville Shale play potentially could have a larger impact on the company than any other play, according to Chesapeake CEO Aubrey McClendon. Chesapeake is currently using four operated rigs to further develop its 300,000-plus net acres of leasehold and expects to be operating up to 12 rigs by year-end 2008 and up to 20 rigs by year-end 2009.