Chesapeake Energy Corporation Sells 98 BCFE of Proved Reserves for Proceeds of $412 Million

Chesapeake Energy Corporation Sells 98 BCFE of Proved Reserves for Proceeds of $412 Million, or $4.20 Per MCFE, in a Volumetric Production Payment Transaction
1/5/2009 7:02 AM


OKLAHOMA CITY, Jan 05, 2009 (BUSINESS WIRE) -- Chesapeake Energy Corporation (NYSE:CHK) today announced it has sold certain Chesapeake-operated long-lived producing assets in the Anadarko and Arkoma Basins in its fourth volumetric production payment transaction (VPP). Through the VPP, Chesapeake conveyed a royalty interest to investors associated with Argonaut Private Equity. The purchase was financed by GS Loan Partners, an affiliate of The Goldman Sachs Group, Inc. (NYSE:GS). The assets include proved reserves of approximately 98 bcfe and current net production of approximately 60 mmcfe per day for proceeds of $412 million, or $4.20 per mcfe. Chesapeake retained drilling rights on the properties below currently producing intervals. The company previously announced its intention to complete a VPP by year-end 2008 as part of its plan to build larger cash reserves over the next two years. The transaction, which closed on December 31, 2008, will be treated as a sale for accounting purposes and the company's proved reserves will be reduced accordingly. Chesapeake was advised on the transaction by Jefferies Randall & Dewey of Houston, Texas.
Chesapeake Energy Corporation is the largest producer of natural gas in the U.S. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and corporate and property acquisitions in the Barnett Shale, Haynesville Shale, Fayetteville Shale, Marcellus Shale, Anadarko Basin, Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast and East Texas regions of the United States. Further information is available at www.chk.com.

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Thanks, that does shed a little light on the situation. Now, for me, if we could just get them to come to T21N in bossier parish....I would really be happy. Happy New year Shale Geo and Thanks..
CHK is about to drill in 19N in bossier parish, so they are getting closer.
Thanks, any serials numbers or anything that would help me out, I like to watch for updates on Sonris!!!!
Nothing makes Earl happy. Heaven forbid that corporate america makes money.
"You soooooo bad Earl!" LOL
I brought this page up just now while I'm waching the innauguration and I'm like, what the heck, they are singing Flipper?
Jay:
Your take was my take. Thanks.
L.
Im happy! I Also hope B Obama limits offshore drilling! Is that greedy?
Not greedy, just retarded.
We can see you set shite for New Years resolutions, huh Baron ?
That sensitivity training is doing wonders for you !! (LOL) :-)
I don't believe in New Years resolutions. If somthing isn't important enough to change the other 364 days a year, why bother.
Retarded? Ouch!!!!!!

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