Chesapeake Energy Corp. has put more of its assets on the sale block as it continues to combat a looming cash crunch.
Chesapeake is selling about 80,000 acres in Grady, Stephens and Garvin counties, an extension of the Cana Woodford Shale, according to a prospectus from industry broker Meagher Energy Advisors. Nearly all of Chesapeake's leases in the area are held by production.
The company has nearly 300 producing wells in the area, with daily production of more than 1,500 barrels of oil and 37 million cubic feet of natural gas.
Chesapeake contends there is significant upside to drilling the play, which counts Continental Resources Inc., Newfield Exploration Co. and Marathon Oil Co. as its most active drillers.
Chesapeake is selling its acreage because it does not have enough money in its drilling budget to “adequately develop the abundant additional opportunities in the area,” according to the listing.
A company spokesman declined further comment on the sale.
Argus Research analyst Phil Weiss said the sale fits with the company's stated plans to narrow its focus by selling unneeded acreage.
The Oklahoma City-based oil and natural gas company has spent much of 2012 looking to raise money to offset its budget problems. Its budget shortfall has been estimated at as much as $22 billion.