ChesapeakeEnergy Corp. has agreed to sell some of its assets in the STACKplay in northern Oklahoma for about $470 million. The transaction is expectedto close by the end of the third quarter.
Chesapeake would divest about 42,000 net acres and 400producing wells generating 3,800 barrels of oil equivalent per day toNewfield Exploration Co.,according to Chesapeake's May 5 earnings release.
"The STACK acreage sale we are announcing todayaccelerates value from a portion of our undeveloped acreage that currentlygenerates very little cash flow, giving us the ability to enhance currentliquidity," Chesapeake CEO Doug Lawler said in a statement. "Thistransaction contributes substantially to achieving our previously announcedtarget of an incremental $500 million to $1 billion of asset sales by year-end.We anticipate subsequent divestitures during the second and third quarters."
STACK is short for Sooner Trend, Anadarko Basin, Canadianand Kingfisher counties.
The company reported a net loss available to commonstockholders of $964 million, or a loss of $1.44 cents per share, compared to aloss of $3.78 billion, or $5.72 per share, in the year-ago quarter.