Chesapeake Plans to Shed More Assets

Natural gas producer Chesapeake Energy Corp. (NYSE: CHK) has reportedly struck a deal to sell about 504,000 net acres of leasehold in the northern part of the Denver-Julesburg (DJ) basin, which stretches across parts of Colorado, Wyoming, and Nebraska. Last year Chesapeake sold 800,000 acres in the same area to Cnooc Ltd. (NYSE: CEO) for about $1.3 billion, which included about $700 million in funding costs.

Chesapeake plans to sell some $11.5 billion in assets by the end of the year as it tries to shore up its finances. The company has also said it would sell oil-rich assets in the Permian Basin of Texas and spin-off a royalty trust to develop its Mississippian Limestone deposits.

Shares of Chesapeake are up about 1% at $15.25 in a 52-week range of $13.32-$35.75.