The sale, which will help Chesapeake Energy focus its capital on its Marcellus and Haynesville positions, includes nearly 377,000 net acres and close to 1,350 wells which had an average net daily production of about 27,700boe during Q3 2022, of which 85% was liquids
Chesapeake Energy signs $1.4bn deal to sell Brazos Valley acreage to WildFire Energy. (Credit: Simon J from Pixabay)
American shale gas producer Chesapeake Energy has agreed to divest its Brazos Valley acreage in the Eagle Ford Shale in Texas, US to WildFire Energy for $1.42bn.
The sale includes nearly 377,000 net acres and close to 1,350 wells along with associated property, plant, and equipment.
According to Chesapeake Energy, the average net daily production from the Brazos Valley acreage was about 27,700 barrels of oil equivalent (boe) during Q3 2022, of which 85% was liquids.
As of 31 December 2021, net proved reserves associated with the assets were around 96.8 million barrels of oil equivalent (mmboe).
Chesapeake Energy president and CEO Nick Dell’Osso said: “Today marks an important step on our path to exiting the Eagle Ford as we focus our capital on the premium, rock, returns and runway of our Marcellus and Haynesville positions.
“We remain actively engaged with other parties regarding the rest of our Eagle Ford position.”
Last year, Chesapeake Energy acquired Chief Oil & Gas to gain nearly 113,000 net acres in the Marcellus Shale.
For WildFire Energy, the acquisition of the Brazos Valley acreage will grow the company’s portfolio in the eastern Eagle Ford to nearly 2,000 gross wells on approximately 600,000 net acres. The company’s acreage covers the Burleson, Robertson, Brazos, Madison, Washington, Lee, and Grimes counties of Texas.
WildFire Energy president and COO Steve Habachy said: “This acquisition is highly synergistic with our existing assets and the combined size of the overall business positions WildFire Energy as a leading operator in the Eastern Eagle Ford basin.
“The consolidation of 600,000 contiguous acres is transformative to the business and will drive economies of scale to deliver more high margin barrels to the advantageous Gulf Coast market.”
WildFire Energy is an energy platform company founded in 2019 with funding from Warburg Pincus, and others. The company targets acquisition of production-weighted oil and gas assets in onshore American basins.
Last March, the company acquired MD America Energy and prior to that, in 2021, snapped up Hawkwood Energy to start consolidating the Eagle Ford basin.