Chesapeake Energy said on Monday that it has sold assets in the Haynesville Basin for $450 million.
Chesapeake said it has signed an agreement to sell a portion of its acreage and producing properties in its Haynesville Shale operating area in northern Louisiana to a private company.
The sale includes about 78,000 net acres, with 40,000 net acres considered to be core acreage.
The sale also includes 250 wells currently producing about 30 million cubic feet of gas per day net to Chesapeake.
The company expects the transaction to close in the first quarter of 2017.
In addition, Chesapeake is marketing about 50,000 net acres located in the northeastern part of its Haynesville Shale operating area.
The company expects to close a deal for those acres the first quarter of 2017.
Following both of the planned divestitures, Chesapeake will retain about 250,000 net acres in the core of the Haynesville Shale.
The company said its 2017 development program in the Haynesville will be focused on longer laterals and further enhanced completions.
Chesapeake expects the plan to result in projected adjusted production growth of 13 percent from its Haynesville operations in 2017.
Chesapeake CEO Doug Lawler said the company has now earned $2 billion in gross proceeds from divestitures either signed or closed in 2016, excluding certain volumetric production payment repurchase transactions.
The company expects that total to grow in the first quarter of 2017 thanks to its second proposed acreage sale in the Haynesville.
“With our long-term target of $2 to $3 billion in debt reduction, we will continue to look for opportunities to accelerate value through the sale of additional non-core assets in 2017 and beyond,” Lawler added.