Chesapeake Monetizes $2 Billion In Three Deals

Entered 10-year VPP deal for assets in OK Anadarko Basin Granite Wash, gaining 125 MMcf3/d, 160 Bcfe proved.

In the second deal, an affiliate of Morgan Stanley (NYSE: MS) has acquired certain producing assets in its Anadarko Basin Granite Wash play in a 10-year volumetric production payment for approximately $745 million. The deal values production at approximately $4.68 per thousand cubic feet of natural gas equivalent. Current net production is estimated 125 million cubic feet of gas equivalent per day. Proved reserves are approximately 160 billion cubic feet of gas equivalent.

Chesapeake has retained drilling rights on the properties above and below currently producing intervals and outside of existing producing wellbores. Including this transaction, the company has completed 10 VPP transactions since December 2007 and, in doing so, has sold approximately 1.37 trillion cubic feet of natural gas equivalent of proved reserves for combined proceeds of approximately $6.4 billion.