The Chesapeake Energy Corp. announced that it’s going to be selling 78,000 acres of land and wells for $450 million. The deal includes about 250 wells in northern Louisiana Haynesville Shale. The wells produce around 30 million cubic feet of natural gas daily.
The improvement in the drilling in Haynesville has brought Chesapeake to the 35 rigs it’s had since 2010. Earlier this fall the company stated that it was willing to sell at least 125,000 acres in Haynesville, which is equal to one-third of the company’s shares there. That announcement proceeded the one Chesapeake made Monday in which the company says it plans on $2 billion in assets this coming year.
The new wells the company have built are equipped with 110 frack stages that help with hydraulic fracturing and the breaking of rocks that help stimulate the production and movement of natural gas throughout the 10,000 ft. well. At one of the wells in Haynesville, crews pumped up to 50 million pounds of sand which executive vice president Jason Pigott says is “the most sand pumped into one well anywhere on earth.”
Fifty thousand out of the 78,000 acres of land Chesapeake plans to sell are what the company calls “core acres”. The $2 billion in assets Chesapeake is willing to sell is only the beginning of their long-term goal of reducing company debt. Doug Lawler, the CEO of Chesapeake Energy Corps., said in statement, “Through the continual optimization of our asset base, reduction in our net leverage, improvement in liquidity and cash flow generating capabilities, we believe Chesapeake is well positioned for the years ahead.”