2010-11-30-2010-11-29

To buy Yellow Rose and Bluebonnet properties covering 23,180 net leasehold acres in McMullen County.

Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) plans to acquire certain Texas assets from Antares Energy Ltd., West Perth, Australia, (Australia: AZZ) and its partner, privately held, Dallas-based San Isidro Development Co. for US$200 million in cash.

The deal values the properties at $8,628 per net acre.

The assets include the Yellow Rose and Bluebonnet properties that include 23,180 net oil and gas leasehold acres in McMullen County.

Prior to entering the Yellow Rose and Bluebonnet deal, Chesapeake had acquired 600,000 Eagle Ford shale acres. Antares' net acreage position in the Yellow Rose and Bluebonnet projects is approximately 18,104 acres (78.1%) and will received US$156 million of the total sale price.

Antares chief executive James Cruickshank says, "This transaction will provide the necessary capital to invest in extremely attractive new exploration ventures as well as the acquisition of material, existing oil and gas production."

Antares will be free carried through the drilling of more than 110 wells to fully develop the acreage on 80-acre spacing. The first well in this acreage averaged 1,180 barrels of condensate equivalent per day in its inaugural month. A second well with a lateral length approaching 8,000 ft is awaiting fracture stimulation.

Tudor, Pickering, Holt & Co. Securities Inc. is financial advisor to Antares. The deal is expected to close on Dec. 15.