Chesapeake sells eastern Pa. Marcellus shale properties

HOUSTON — Southwestern Energy Company is buying natural gas properties located in Pennsylvania prospective for the Marcellus Shale from Chesapeake Energy Corporation and its partners for approximately $93 million, subject to closing conditions.

Upon closing, Southwestern intends to use its revolving credit facility to finance the acquisition.

The company anticipates the acquisition, announced April 29, to close on or around May 15.

Steve Mueller, president and chief executive officer of Southwestern Energy, said the acquisition of approximately 162,000 net acres is near Southwestern’s existing position.

“The key acreage is located in Susquehanna, Wyoming, Tioga and Sullivan counties,” Mueller said.

Current net production from these properties is approximately 2 MMcf per day from 17 gross wells (1.2 net wells).

“Upon closing of this transaction, our acreage position of approximately 337,000 net acres in the Marcellus strengthens our ability to provide future double-digit production and reserve growth.”

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