By OGJ editors
HOUSTON, Jan. 23 -- Chesapeake Energy Corp., Oklahoma City, has entered into agreements with seven private companies to acquire 54 MMcfd of natural gas-equivalent production and 660 bcf of reserves in its Barnett shale, South Texas, Permian basin, Midcontinent, and East Texas regions.
The assets include 264 bcf of gas-equivalent proved and 396 bcf probable and possible reserves. The proved reserves are 91% gas with a reserves-to-production index estimated at 13.4 years.
Chesapeake will pay an aggregate $796 million in cash for the properties and has earmarked $909 million for drilling and development. It has identified 260 proved undeveloped and 480 probable and possible drilling locations.
Chesapeake expects to drill an additional 750-850 wells in the Barnett shale and intends to increase its rig count there to 12-15 rigs by yearend.
The company has closed on three of the deals and expects to close the final four Feb. 28.
In another transaction, through its wholly owned subsidiary Nomac Drilling Corp., Chesapeake has agreed to acquire Martex Drilling Co. LLP for $150 million. With the addition of Martex's 13 drilling rigs, Chesapeake expects its rig fleet to reach 60 by yearend.
As existing Martex rig contracts expire, Chesapeake will use the rigs for its own drilling program, meeting 60% of its drilling needs by yearend with its own rigs.