Under the terms of the deal, Covey Park Energy will acquire approximately 41,500 net acres and 326 operated and non-operated wells which are currently producing approximately 50 million cubic feet (mmcf) of gas per day.
Chesapeake CEO Doug Lawler said: "We are pleased with the results of our non-core Haynesville sales packages, totaling projected gross proceeds of $915m, while divesting of only approximately 80 mmcf of daily gas production and approximately $50 million of estimated 2017 operating income.
“Upon closing, this strong bid for our second Haynesville package, along with our recent new issue and tender, will position Chesapeake with significant liquidity as we begin a new year.”
The deal is scheduled to be completed in the first quarter of 2017.
Chesapeake said it has delivered on its strategy and achieved financial and operational objectives in 2016. It also exceeded 2016 asset sales goal by approximately $500m, bringing total gross proceeds from divestitures to approximately $2.5bn.
Lawler added: “We will continue to pursue opportunities to strengthen our balance sheet in 2017."
Earlier this year, affiliates of Covey Park Energy have acquired assets located in the Haynesville/Bossier shale areas of East Texas and North Louisiana.
The assets acquired are located primarily in Panola, Nacogdoches and San Augustine counties in Texas, and DeSoto, Bossier, and Sabine Parishes in Louisiana.
Image: Chesapeake intends to strengthen its balance sheet through sale of assets. Photo: courtesy of Rosemary Ratcliff/FreeDigitalPhotos.net.
