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CORRECTED-UPDATE 1-Chesapeake looking to sell some East Texas acreage-adviser
May 30, 2012 / 5:12 PM / 5 years ago

CORRECTED-UPDATE 1-Chesapeake looking to sell some East Texas acreage-adviser

NEW YORK, May 30 (Reuters) - Chesapeake Energy is seeking to sell about 57,000 acres of leaseholdings in East Texas, as the company works to raise cash to meet an expected funding gap, according to a prospectus released by one of its advisers.

The acreage is in Madison, Leon, Houston, Grimes and Robertson counties in Texas and would give buyers access to the Woodbine oil formation, the prospectus said. The prospectus was posted on the website of Meagher Energy Advisors, an energy-focused asset acquisition and divestiture boutique firm that has sold assets for Chesapeake in the past.

Chesapeake, which earlier this month arranged a pricey $4 billion loan from its investment bankers to tide it over, has said it will sell as much as $11.5 billion in assets this year in order to close a $9 billion to $10 billion funding shortfall.

It has already announced that it is looking to sell its 1.5 million acres of lease holdings in the oil-rich Permian basin and a half-million acres in Wyoming and Colorado as well as find a joint venture partner in another liquids-rich region, the Mississippi Lime basin, in order to raise cash.

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