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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.
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