This excerpt taken from the CHK 8-K filed Feb 22, 2008.
Producing Property Monetizations and Asset Sales – On December 31, 2007, the company monetized certain Chesapeake-operated long-lived producing assets in Kentucky and West Virginia and retained drilling rights on the properties below currently producing intervals and outside of existing producing wellbores. Chesapeake received $1.1 billion for the sale of a volumetric production payment on the Appalachian assets covering proved reserves of approximately 208 bcfe and current production of approximately 55 million cubic feet of natural gas equivalent (mmcfe) per day. For accounting purposes, the transaction was treated as a sale and the company’s proved reserves were reduced accordingly. The company also plans to pursue additional monetizations of similarly mature properties in 2008 and 2009 and anticipates further proceeds of approximately $2.0 billion.
In the 2008 first quarter, the company sold non-core oil and natural gas assets in the Rocky Mountains and in the southeastern Oklahoma Woodford Shale play for proceeds of approximately $250 million. The sales involved approximately six mmcfe of daily production and 32 bcfe of proved reserves.