Chesapeake Energy Corp. is selling another chunk of its acreage in Pennsylvania as it tries to close a multibillion dollar budget gap.
Pittsburgh-based EQT Corp. announced Friday it has signed a definitive agreement with Chesapeake to buy about 99,000 net acres and 10 horizontal wells in southwestern Pennsylvania for $113 million. The acreage includes 67,000 acres in the Marcellus Shale and 32,000 acres in the dry-gas portion of the Utica Shale.
EQT will pay $60 million for undeveloped acreage and $53 million for the existing Marcellus wells. Three of the wells currently are producing.
Last week, Chesapeake struck a $93 million deal with Houston-based Southwestern Energy Co. for about 162,000 net Marcellus acres.
The Oklahoma City oil and natural gas producer has spent more than a year scrambling to sell off enough assets to fund ongoing operations.
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Chesapeake Energy names Ryan as new director
Chesapeake Energy Corp. on Friday replaced one of its oldest directors with 47-year-old Thomas L. Ryan, CEO of Service Corp. International, which owns cemeteries and funeral homes. Ryan, who will stand for election at next month's Chesapeake shareholders meeting, was appointed after Louis A. Simpson resigned, the company announced. He is the youngest of the company's eight directors. Simpson, 76, had been elected to the board in June 2011 at the behest of Chesapeake's largest shareholder, Southeastern Asset Management. The money manager recommended Ryan. Chesapeake Chairman Archie Dunham said the board was pleased to add Ryan. “With his extensive management experience and financial expertise ... Tom will be a great addition to our audit committee and a terrific resource for our board and management team,” Dunham said.