Chesapeake Energy announced this morning that it has agreed to sell an acreage package to Indigo Minerals for $450 million. The assets are in Louisiana and include approximately 78,000 net acres with 250 wells currently producing around 30 MMcf/day. CHK categorizes 40,000 of these acres as core. The company is also marketing another 50,000 acres in Louisiana, which will leave it with approximately 250,000 net acres considered core.
There are few public details about the location of the assets involved in the transaction, but the deal is part of a larger attempt to reduce the company's debt by selling assets. The company has long been burdened by excessive debt leftover from the gun slinging ways of former CEO Aubrey McClendon tied to the many complex financial transactions that fueled his land grab along with low gas and oil prices. It's a long slog towards stability, but these are necessary steps along the way.