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Ohio Utica Shale

Chesapeake sells shares in new subsidiary

By Bob Downing Published: April 10, 2012

Oklahoma-based Chesapeake Energy Corp. on Monday announced a $2.6 billion asset sale that will cut debt and fund drilling after slumping natural gas prices eroded its cash flow.

The energy giant sold shares in a new subsidiary to an investment group led by a Blackstone Goup LP-led affiliate that includes TPG Capital and EIG Global Energy Partners LLC.

The agreement gives the buyers a share of royalties in the Cleveland and Tonkawa drilling areas in Oklahoma and a 6 percent annual distribution.

Chesapeake also agreed to sell Morgan Stanley 10 years worth of future gas output from the Anadarko Basin Granite Wash for about $745 million.

In a third deal, Chesapeake is selling Exxon Mobil Corp. 58,400 net acres of leases in Oklahoma's Texoma Woodford play for about $590 million in cash before certain costs and adjustments.

The moves appear to part of Chesapeake's plan to sell $17.5 billion in assets by the end of 2013 to plug a cash-flow problem aggravated by low prices for natural gas.




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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

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Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

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Rig Count Interactive Map by Baker Hughes, an energy services company.

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