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Shale Assets of Chesapeake Sold to Southwestern Energy for 54 Billion
<p>The image depicts Raven Drilling&rsquo;s oil well in the the Bakken shale formation in North Dakota. C<em>opyright Andrew Burton,&nbsp;</em><em>Getty Images News</em></p>

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

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

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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