Chesapeake Energy Corp. has signed a $1.425 billion deal to sell the Brazos Valley region of its Eagle Ford asset to WildFire Energy I.
WildFire Energy is an independent energy company focused on the acquisition, exploitation and production of oil and natural gas properties in the United States.
The sale involves 377,000 net acres and 1,350 wells along with related property, plants and equipment. During third quarter 2022, the average net daily production from these properties was about 27,700 barrels of oil equivalent. As of Dec. 31, 2021, net proved reserves associated with these properties were about 96.8 million barrels of oil equivalent.
Chesapeake will receive $1.2 billion upon closing, with the additional $225 million paid in annual installments of $60 million throughout the next three years, and $45 million in the fourth year. The company is planning to use the proceeds to repay borrowings under its revolving credit facility and will make them available
