Chesapeake Energy selling Barnett Shale acreage
HOUSTON, July 23
HOUSTON, July 23 (Reuters) - Chesapeake Energy Corp, a U.S. oil and gas company facing funding shortfalls this year and next, is selling 3,300 acres (1,335 hectares) in the Barnett Shale in north Texas as part of its effort to limit exposure to low-priced natural gas.
Chesapeake, under pressure from big shareholders to cut costs due to its heavy spending, depressed gas prices and a big debt load, has already laid off 8 percent of its workforce in the Barnett Shale. The company also previously said it would entertain offers for its Fort Worth office tower.
The company's real estate arm, Chesapeake Land Development, aims to raise nearly $100 million from the sales of its Barnett Shale land parcels, according to the unit's website.
A spokeswoman for the company declined to comment.
The sales mark a retreat for the company that helped to pioneer the concept of urban drilling.
When natural gas traded at around $13 per million British thermal units in 2008, Chesapeake drilled wells at a Fort Worth country club, in north Texas neighborhoods and even at the Dallas-Fort Worth International Airport.
This year, natural gas prices fell to their lowest level in a decade, so the company said it was devoting 85 percent of its budget toward drilling for oil.
To help fill a funding gap of around $17 billion for this year and next, Chesapeake has said it would sell up to $14 billion in assets this year. So far, the company has announced $6.6 billion in sales.
Shares of Chesapeake rose 1.3 percent to $17.43 in afternoon New York Stock Exchange trading.
- Tweet this
- Share this
- Digg this
- Jet Airways chairman says looking to restructure debts, talking to bankers
- China's Xiaomi hopes Mi 4 smartphone can take on Apple
- U.N.'s Pillay says Israel may be committing war crimes
- Nifty hits record high on foreign buying, higher Asian stocks
- Ukraine says pro-Russia rebels shoot down two fighter jets
The Nifty rose to a record high on Wednesday, led by gains in blue-chips such as ICICI Bank on continued foreign-investor buying, while higher Asian shares also helped sentiment. Full Article
Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs Full Article
Jet Airways chairman says looking to restructure debts, talking to bankers Full Article
Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec Full Article
Supreme Court could allow Sahara boss to conduct asset sale talks, company says. Full Article
Five held in China food scandal probe, including head of Shanghai Husi Food Full Article