Under the terms of the agreement, Southwestern Energy will acquire certain oil and gas assets covering approximately 413,000 net acres in West Virginia and southwest Pennsylvania targeting natural gas, natural gas liquids and crude oil contained in the Upper Devonian, Marcellus and Utica shales.

The assets include 256 operated and producing Marcellus and Utica horizontal wells and an additional 179 non-operated or non-producing Marcellus and Utica horizontal wells, bringing the total horizontal well count to 435 wells.

Scheduled to be closed in the fourth quarter of 2014, the transaction is subject to certain customary closing conditions including the receipt of third-party consents.

The properties’ average net daily production was approximately 56,000 barrels of oil equivalent (boe) during September including 184,000 Mcf of gas, 20,000 barrels of natural gas liquids and 5,000 barrels of condensate.

Chesapeake chief executive officer Doug Lawler said: "Today’s announcement marks a major step in Chesapeake’s transformation and a dramatic improvement in our financial strength as we seek to maximize value for our shareholders.

"We expect our full-year production guidance for 2015 to remain in the range of 7-10% growth from 2014 levels adjusted for asset sales.

"We look forward to deploying the proceeds from this significant transaction in ways that will continue to drive even greater shareholder value."

Image: Map showing Chesapeake Energy’s oil and gas assets acreages. Photo: courtesy of Southwestern Energy Company.