Chesapeake Selling More Assets in Marcellus
Monday, May 6, 2013
PITTSBURGH- Chesapeake Energy Corp. is selling roughly 99,000 acres in southwestern Pennsylvania and 10 horizontal Marcellus wells, located in Washington County, PA, to EQT Corporation for $113 million.
The acreage includes 67,000 Marcellus acres and 32,000 Utica acres.
Of the 10 wells sold, three are currently producing. The remaining seven are set to produce by the end of 2013, adding 1 billion cubic feet of sales volume.
The transaction is expected to close May 30, 2013.
This move is part of an ongoing effort to sell assets in order to reduce the company’s debt load.
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.