The properties, which are located in Atoka, Coal, Hughes and Pittsburg counties in Oklahoma are currently producing approximately 50 million cubic feet of natural gas equivalent per day. The companies anticipate closing the transaction on August 8, 2008.
Aubrey McClendon, CEO of Chesapeake Energy, said: There was substantial industry interest in our Woodford Shale asset package and we are pleased to announce the sale of these properties to BP. This transaction completes another aspect of our asset monetization program and enables Chesapeake to redeploy capital to our Haynesville, Barnett and Marcellus Shale plays and further improves the company’s capital structure.
Andy Inglis, BP’s CEO of exploration and production, said: This purchase is a strategic entry into an attractive and established shale basin with potential resources of up to two trillion cubic feet. It complements our extensive unconventional gas plays throughout North America.
