Chief Buys Marcellus Acreage from Chesapeake, USA

Chief Oil & Gas and working interest partners Enerplus and Tug Hill have acquired MKR Holdings from Chesapeake Appalachia for approximately $500 million.

The acquired assets include current month production of approximately 130,000 MCFD and approximately 40 operated wells waiting on completion or pipeline as well as undeveloped acreage. The acquisition includes leasehold in Bradford, Lycoming, Sullivan, Susquehanna and Wyoming Counties in Pennsylvania.

“With this acquisition we have significantly expanded our operational footprint in the northeastern Pennsylvania region,” stated Sam Fragale, Senior Vice President of Operations for Chief Oil & Gas. “This acquisition comes with existing cash flow from current production, increases our working interest in wells we currently operate and provides additional development opportunities in a great area.”

Chief Oil & Gas had existing working interest in many of these wells and will be increasing its ownership percentage in these and future wells as a result of the acquisition. Chief Oil & Gas currently operates more than 100 wells in the Marcellus Shale and owns approximately 210,000 gross leasehold acres.

This asset purchase is another stage in the multi-phased growth plan for Chief Oil & Gas in the Marcellus Shale region.

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LNG World News Staff, December 20, 2013