OKLAHOMA CITY--(Business Wire)--
Chesapeake Energy Corporation (NYSE:CHK) today announced it has sold certain
Chesapeake-operated long-lived producing assets in the Anadarko and Arkoma
Basins in its fourth volumetric production payment transaction (VPP). Through
the VPP, Chesapeake conveyed a royalty interest to investors associated with
Argonaut Private Equity. The purchase was financed by GS Loan Partners, an
affiliate of The Goldman Sachs Group, Inc. (NYSE:GS). The assets include proved
reserves of approximately 98 bcfe and current net production of approximately 60
mmcfe per day for proceeds of $412 million, or $4.20 per mcfe. Chesapeake
retained drilling rights on the properties below currently producing intervals.
The company previously announced its intention to complete a VPP by year-end
2008 as part of its plan to build larger cash reserves over the next two years.
The transaction, which closed on December 31, 2008, will be treated as a sale
for accounting purposes and the company`s proved reserves will be reduced
accordingly. Chesapeake was advised on the transaction by Jefferies Randall &
Dewey of Houston, Texas.
Chesapeake Energy Corporation is the largest producer of natural gas in the
U.S.Headquartered in Oklahoma City, the company's operations are focused on
exploratory and developmental drilling and corporate and property acquisitions
in the Barnett Shale, Haynesville Shale, Fayetteville Shale, Marcellus Shale,
Anadarko Basin, Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin,
South Texas, Texas Gulf Coast and East Texas regions of the United States.
Further information is available at www.chk.com.
Argonaut Private Equity is a diversified global private equity fund with more
than $3.5 billion under management. Argonaut exercises wide discretion on
investment size, stage, sector and geography. Its equity investments span such
diverse markets as alternative energy, technology, financial services, media,
telecommunications, medical devices, aviation, retail and healthcare. Argonaut's
portfolio includes investments in the United States, India, China, Israel,
Japan, Eastern Europe, the Netherlands and Australia.
The Goldman Sachs Group, Inc. is a bank holding company and a leading global
investment banking, securities and investment management firm.Established in
1986, the firm`s Principal Investment Area is part of the Merchant Banking
Division and includes the GS Capital Partners, GS Loan Partners and GS Mezzanine
Partners funds.GS Loan Partners I, with $10.5 billion in equity and leverage
commitments, is Goldman Sachs` first fund dedicated to providing senior secured
loans and investing in senior debt and is one of the largest funds dedicated to
the senior secured loan asset class across North America and Europe.For more
information, please visit www.gs.com/pia.
Chesapeake Energy Corporation
Investor Contact:
Jeffrey L. Mobley, CFA, 405-767-4763
Senior Vice President -
Investor Relations and Research
jeff.mobley@chk.com
or
Media Contact:
Jim Gipson, 405-935-1310
Director - Media Relations
jim.gipson@chk.com
Copyright Business Wire 2009
