Chief buys Chesapeake natural gas leases for $500 million

Pennsylvania’s biggest natural gas driller has sold off some of its natural gas leases in a $500 million deal with Chief Oil and Gas. 

Chesapeake Energy sold leases held under its subsidiary MKR Holdings LLC in Bradford, Lycoming, Sullivan, Susquehanna and Wyoming Counties, according to a press release from Chief. As of August, the most recent reporting period, Chesapeake had 752 active wells in Pennsylvania, most of them in Bradford County.
Daria Fish, a Chief spokeswoman, could not say how many leases were transferred under the deal.
More from the Scranton Times-Tribune:

The purchase included 130 million cubic feet per day of natural gas in production, plus 40 wells waiting on completion or installation of gathering lines, [Fish] said.
She would not say where the leases or wells are located within each county[…]
Depending on the lease, Chief could be the well operator or a nonoperator partner, she said. She said affected landowners will receive letters from the company within the next few months.

In the meantime, Fish said landowners with questions should call Chief’s Land Department in Wexford at (724) 933-5511.
Chesapeake Energy has undergone major financial restructuring this year. Under the new leadership of CEO Doug Lawlor, the company has sold off assets and laid off hundreds of employees across the country. In August, Chesapeake laid off its entire community and landowner relations staff in Bradford County, a move that was particularly frustrating for local officials.
Fish said the Chief plans to open a field office in Bradford County by the end of January.

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