CHK to divest Utica Shale assets for $3.4bn

Chesapeake Energy (CHK) has entered two transactions to divest a portion of its 6,070km^² area in the Utica Shale play in eastern Ohio, US, for $3.4bn.

CHK and an undisclosed international energy firm will form a joint venture whereby the partner will acquire an undivided 25% interest in a 2,630km² area.

Under the transaction, CHK will receive $2.14bn and EnerVest, which owns 323km^² of the total area, will receive $300m.

CHK has completed the sale of its perpetual preferred shares in its subsidiary CHK Utica to EIG Global Energy Partners for $500m.

The company will also sell additional CHK Utica shares of $750m to other investors by 30 November 2011.

CHK Utica owns 700,000 net leasehold acres within an area of mutual interest in the Utica Shale play.