Chesapeake Offers Oklahoma Wells for Sale to Plug Cash Gap

Chesapeake Energy Corp. (CHK), the second- largest U.S. natural gas producer, is offering some Oklahoma drilling leases for sale to help plug a gap between cash flow and expenses.

Chesapeake is seeking buyers for 28,360 net acres in three counties west of the Colony Wash field, according to a posting on Meagher Energy Advisors website today. The asset doesn’t include any of Chesapeake’s drilling sites in the neighboring Texas panhandle, site of a June discovery called Hogshooter that was the biggest gusher in the company’s 23-year history.

Chesapeake climbed 3.6 percent to $20.14 at the close in New York.

The acreage for sale has 117 wells already drilled in it, according to today’s posting. Oklahoma City-based Chesapeake is selling the asset “because its current drilling budget is not sufficient to fully develop its leasehold in this area,” the listing said.

Chesapeake is targeting as much as $14 billion in asset sales this year and $5 billion in 2013 to cover a funding gap aggravated by a slump in U.S. gas prices. Chesapeake has used Meagher’s website to advertise other asset sales this year.

To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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