NorthAmOil: Chesapeake to offload remaining Eagle Ford assets for $700mn

US independent Chesapeake Energy announced this week that it had struck a deal to sell its remaining Eagle Ford shale assets to SilverBow Resources for $700mn. The transaction brings the total proceeds from Chesapeake’s Eagle Ford exit to more than $3.5bn, the company said in an August 14 statement.

The transaction entails around 42,000 net acres (170 square km) and roughly 540 wells in a condensate-rich portion of the Eagle Ford located in Texas’ Dimmit and Webb counties, along with related property, plant and equipment. The properties produced around 29,000 barrels of oil equivalent per day (boepd) on average during the second quarter of 2023, of which liquids comprised roughly 60%. These volumes generated around $50mn of earnings before interest, taxes, depreciation, depletion, amortisation and exploration expenses (EBITDAX), Chesapeake said. As of December 31, 2022, the properties had net proven reserves of roughly 124mn barrels of oil equivalent (boe).

The transaction is anticipated to close later this year.

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