Chesapeake Energy Corp. Completes Acquisition


Published:

Chesapeake Energy Corp. has completed its previously announced acquisition of Mid-Continent, Permian Basin, South Texas and onshore Gulf Coast natural gas assets from privately-owned Concho Resources Inc. for $420 million.

In addition, the company has completed the previously announced acquisition of two smaller producing property packages totaling $90 million.

Based on internal reservoir engineering estimates, Chesapeake believes that through these three transactions it has acquired approximately 320 billion cubic feet of gas equivalent (bcfe) of proved gas reserves, approximately 195 bcfe of probable and possible gas reserves and current production of approximately 70 million cubic feet of natural gas equivalent (mmcfe) per day. The acquisitions were funded 60% with common equity issued in January 2004 and 40% from cash on hand and borrowings from the company's revolving bank credit facility.

Archive »Archive »

Keeping It Cool

Rolls-Royce said BG Group has selected the Trent 60 DLE industrial gas turbine as the driver for the main refrigeration compressors in the proposed Lake Charles LNG Export project in Louisiana.

LNG Exports Would Raise NatGas Prices

The Energy Information Administration (EIA) says exports of liquefied natural gas (LNG) from the United States inevitably would increase natural gas prices for domestic consumers.

Lauber Named CEO At MAN Diesel & Turbo

Uwe Lauber has been named chairman of the executive board of MAN Diesel & Turbo.

Seabed Compressor Ready for Tests

Statoil said the world’s first subsea wet gas compressor station is ready for final testing before being installed next year at Gullfaks C field in the North Sea.

EIA Sees Ample U.S. Gas Inventories

The U.S. Energy Information Administration (EIA) has reported that privately-owned gas inventories will be 3532 Bcf (100 x 109 m3) on Oct. 31, lower than at this point a year ago but more than adequate for the coming winter.