INTERESTING BUY - SELL - COMMENTS?

By OGJ editors
HOUSTON, Oct. 13 -- Harding Energy Partners LLC (HEP), Dallas, reported that it acquired all core Barnett shale assets held by DDJET Ltd. LLP and subsequently sold the holdings to Chesapeake Energy Corp.

DDJET is a partnership established in late 2006 to develop natural gas production in Tarrant, Johnson, Ellis, Dallas, Denton, Navarro, Collin, and Hill counties in Texas. ExxonMobil Corp. subsidiary Metroplex Barnett Shale LLC was the operator for DDJET.

The HEP-Metroplex partnership came about after Harding Co. identified an underutilized pipeline owned by Metroplex parent ExxonMobil. The pipeline extends from Keller through North Richland Hills, Arlington, Grand Prairie, and Midlothian to Corsicana.

HEP made the decision to sell the assets in order to more fully develop its 146,000 net acres in the James-Limestone and 65,000 net acres in the Haynesville shale, both in East Texas. The team also is exploring 50,000 acres it controls in southeastern Mississippi and its large lease position in West Texas.

Operations have been transferred to Chesapeake at the Railroad Commission of Texas. Chesapeake has contracted with HEP for a transition agreement to assure the orderly handover of operations and a land services agreement for leasing and other services in the area. Petrocasa Energy Inc. continues to lead leasing activity.

HEP did not disclose either the assets acquired by Chesapeake or the purchase price.