Shale Assets of Chesapeake Sold to Southwestern Energy for 54 Billion

The image depicts Raven Drilling’s oil well in the the Bakken shale formation in North Dakota. Copyright Andrew Burton, Getty Images News

Shale Assets of Chesapeake Sold to Southwestern Energy for $5.4 Billion

The deal covers 413,000 acres of land in  West Virginia and Pennsylvania that currently produce about 56,000 barrels of oil equivalent per day. 

NEW YORK -- Chesapeake Energy (IW 1000/267) plans to sell a package of shale oil production assets and undrilled acreage in the United States to Southwestern Energy (IW 1000/990) for $5.4 billion, the companies announced Thursday.

The deal covers 413,000 acres of land in  West Virginia and Pennsylvania that currently produce about 56,000 barrels of oil equivalent per day, about 8% of Chesapeake's output. Southwestern said the properties complement shale assets the company already owns in Pennsylvania.

The transaction, expected to close in the fourth quarter, follows a string of other deals as U.S. shale production soars.

The recent 25% drop in oil prices since June is partly due to rising output in the U.S..

Copyright Agence France-Presse, 2014

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