Chesapeake Exploration LLC, Larchmont Resources LLC, Chesapeake Investments, Chesapeake Midstream Partners LLC

Chesapeake Exploration LLC, Larchmont Resources LLC, Chesapeake Investments, an Oklahoma limited partnership, and Chesapeake Midstream Partners LLC have retained Albrecht & Associates Inc. to sell certain assets prospective for the Bone Spring and Wolfcamp plays in the Texas Delaware Basin.

The package includes 37,800 net acres in central Reeves County with 33,500 acres held by production. The producing assets include an average 77% working interest (58% net revenue interest) in 41 producing wells, nine shut-ins, one saltwater-disposal well, seven proved behind-pipe opportunities and three proved undeveloped locations in Toyah Field. The majority of production is from the Woodford and Barnett shales.

Net sales is 7.1 million cubic feet of gas per day. Net proved reserves are 22.4 billion cubic feet of gas (22 billion cubic feet proved producing) and 390,000 barrels of oil and proved and probable reserves are 29.9 billion cubic feet of gas and 3.6 million barrels of oil. The assets are 100% operated.

Upside includes potential in the Delaware, Wolfcamp and Bone Spring intervals.

The package also includes 100% interest in four gathering systems, totaling more than 100 miles of steel and flexpipe. These systems gather substantially all of the gas volumes from the sales properties. Total throughput is approximately 12.3 million cubic feet per day. Currently, the systems do not carry any third-party gas, however, recent permitting by offset operators will likely result in significant third-party volumes.

The bid due date is Dec. 14. The effective date is Dec. 1. Contact Harrison Williams, 713-951-9586, hwilliams@albrechtai.com.