Chesapeake Puts Oklahoma Land Up for Sale
Natural gas titan Chesapeake Energy (NYS: CHK) has put more than 28,000 net acres of drilling fields in Oklahoma up for sale, according to reports.
According to a listing on the Meagher Energy Advisors website, Chesapeake's 28,360 net acres in southwest Oklahoma have a total of 117 wells, including 113 producing. The listing says Chesapeake's drilling budget "is not sufficient to fully develop its leasehold in this area."
The Wall Street Journal quotes a Chesapeake spokesman as saying the property for sale is a "small, noncore package of acreage and not connected to our significant Hogshooter discovery."
The nation's second-largest natural gas producer has been pressured to reduce spending as gas prices remain low. Chesapeake has aimed for up to $14 billion in sales of current assets this year to make up for the low prices, complemented by a $5 billion target next year.
The article Chesapeake Puts Oklahoma Land Up for Sale originally appeared on Fool.com.Dan Carroll has no positions in the stocks mentioned above. The Motley Fool has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, long JAN 2013 $25.00 calls on Chesapeake Energy, short JAN 2014 $17.00 puts on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, and long JAN 2014 $30.00 calls on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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