Chesapeake to sell 94,000 acres in Stark, Portage counties to further balance budget

By Laurie Huffman | Alliance Review Published:

It has been announced by Meagher Energy Advisors that Chesapeake Energy is putting 94,205 acres up for sale in the Utica and Point Pleasant plays, located mainly within Portage County and partly in Stark County. Two operated wells and one non-operated well are included in the acreage to be sold. The sale will constitute about one tenth of the roughly 1 million acres the company has leased in the region, which is mainly located in Carroll, Harrison and Columbiana counties.

Steve Dixon, COO and acting CEO of Chesapeake Energy Corp., stated earlier this month there is a lot of natural gas in all of the Utica Play, and as far as oil production is concerned, it increases as you move from east to west in the Utica. "We have a million acres in the play, and these are great economics (projected) on these wells. So we have a lot of good acreage," said Dixon.

Dixon also reported he is "very excited" for the company's future as it converts the great resources it has discovered and captured into production, cash flow and investor returns. He further pointed out the company has completed or signed up approximately $1.5 billion of sales as part of its plan to sell assets worth $4 billion to $7 billion yet this year, in order to further balance the company's budget.

"We are particularly pleased with the market's response to multiple small asset packages that we have offered. These packages represent very good opportunities for development of exploratory drilling that Chesapeake will not be in a position to exploit in the near term, yet will provide great value to our asset buyers," said Dixon.

Dixon also explained that while many of these assets may not be individually noteworthy to investors, the combined value the company expects to collect this year will be meaningful, leading to further progress in improving the company's balance sheet.

According to Meagher Energy Advisors, the land will be for sale effective May 1, with bids due by May 16 and the sale closing date on June 14. To obtain a data package, a confidentiality agreement must first be executed, according to MEA.

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