Last week Chesapeake Energy Corporation announced its plans to sell all of its acreage in the commercial window for Utica Shale development in Ohio for approximately $2 billion to Encino Acquisition Partners, according to the Farm and Dairy.
Encino Acquisition Partners will get approximately 320,000 net acres in the deal, including 920 operated and non-operated wells (67% natural gas, 24% natural gas liquids and 9% oil), which hold 85 percent of the acreage. The private oil and gas company plans to operate multiple drilling rigs on the properties to increase production and cash flow.
Meanwhile, Chesapeake is turning its focus to the Powder River Basin in Wyoming, where 2019 oil production expected to grow approximately 10 percent from this year, with additional oil growth anticipated.
The deal is expected to close in the fourth quarter of 2018.