On Air Now

Upcoming Shows

Program Schedule »

Tune in to Listen

650 AM Hibbing, Minnesota

Weather

Current Conditions(Hibbing,MN 55746)

More Weather »
37° Feels Like: 26°
Wind: WSW 21 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Today

Rain 52°

Tonight

Partly Cloudy 33°

Tomorrow

Partly Cloudy 63°

Alerts

Chesapeake to sell $1 billion assets to Exco Resources

Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, on April 17, 2012. REUTERS/Steve Sisney
Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, on April 17, 2012. REUTERS/Steve Sisney

(Reuters) - Chesapeake Energy Corp said it would sell oil and gas assets in the Eagle Ford and Haynesville shales in the United States to a unit of Exco Resources Inc for about $1 billion.

The sale is part of Chesapeake's plans to sell up to $7 billion in assets to raise cash.

The company's asset sales signed or closed year-to-date stand at about $3.6 billion, Chesapeake Chief Executive Doug Lawler said in a statement on Wednesday.

Chesapeake has long-term debt of $13.4 billion and faces a $3.5 billion funding gap this year.

The 55,000 acres of Eagle Ford assets in Texas produced about 6,100 barrels of oil equivalent per day (boe) in May.

Net daily output from properties to be sold in the Haynesville shale - which spans Texas, Arkansas and Louisiana - was 114 million cubic feet of natural gas equivalent in May.

(Reporting By Garima Goel in Bangalore; Editing by Maju Samuel)

Comments