Chesapeake Energy, the second-largest US gas producer said it agreed to sell its interests in the Barnett shale operating area in North Texas to private equity-backed Saddle Barnett Resources.
Properties in the proposed Barnett transaction include approximately 215,000 net developed and undeveloped acres and about 2,800 operated wells.
These wells produced an average of 65,000 boe per day or 96% of natural gas, and 4% of natural gas liquids in the 2016 second quarter, Chesapeake said in its statement.
Proved oil and natural gas reserves in the Barnett shale as of the end of 2015 were approximately 81 million boe, according to Chesapeake.
Chesapeake also exited transportation contracts with Williams, saving $1.9 billion over the life of the contracts.
The two companies have agreed to terminate the current gathering agreement and fees pertaining to the Barnett Shale assets, for which Chesapeake expects to pay $334 million in cash to Williams, with First Reserve portfolio company Saddle Resources expected to pay an “additional sum.”