Page 9 - NorthAmOil Week 03 2023
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NorthAmOil INVESTMENT NorthAmOil
Chesapeake to sell Eagle Ford
assets to WildFire for $1.425bn
TEXAS CHESAPEAKE Energy has announced that capital on the premium, rock, returns and run-
it will sell a portion of its Eagle Ford assets, in way of our Marcellus and Haynesville positions,”
the Brazos Valley region, to WildFire Energy for said Chesapeake’s president and CEO, Nick
$1.425bn. Chesapeake expects the transaction to Dell’Osso. “We remain actively engaged with
close in the first quarter of 2023. other parties regarding the rest of our Eagle
The sale will include around 377,000 net Ford position.” The purchase
acres (1,525.6 square km) and 1,350 wells in the With the acquisition, WildFire will operate
Brazos Valley region, along with related prop- 2,000 gross wells on around 600,000 net acres follows WildFire’s
erty, plant and equipment. (2,428 square km) in the eastern Eagle Ford
Average net production from these proper- encompassing Texas’ Burleson, Brazos, Rob- acquisition of MD
ties totalled 27,700 barrels of oil equivalent per ertson, Madison, Lee, Washington and Grimes
day (boepd) – with liquids comprising 85% – counties . It is trying to build scale in the eastern America Energy
during the third quarter of 2022. As of Decem- Eagle Ford play. in March 2022
ber 31, 2021, net proven reserves associated with The purchase follows WildFire’s acquisition
these properties were roughly 96.8mn boe. of MD America Energy in March 2022 and its and its purchase
Chesapeake will receive $1.2bn upon clos- purchase of Hawkwood Energy, which began the
ing, subject to customary adjustments, with the process of consolidating the Eagle Ford shale in of Hawkwood
additional $225mn paid in annual instalments of August 2021.
$60mn over the next three years and $45mn in “This acquisition is highly synergistic with Energy.
the fourth year. Chesapeake anticipates that the our existing assets and the combined size of the
proceeds will be used to repay borrowings under overall business positions [of] WildFire Energy
its revolving credit facility and will be available as a leading operator in the Eastern Eagle Ford
for its share repurchase programme. basin,” said WildFire’s president and COO, Steve
Oklahoma City-based Chesapeake is steadily Habachy. The consolidation of 600,000 contig-
seeking to exit the Eagle Ford, which is mostly uous acres is transformative to the business and
located in Texas. will drive economies of scale to deliver more
“Today marks an important step on our high margin barrels to the advantageous Gulf
path to exiting the Eagle Ford as we focus our Coast market.”
Week 03 19•January•2023 www. NEWSBASE .com P9
