It will expand the company’s premium undeveloped locations by nearly 25%, while extending drilling inventory to more than 15 years, based on current activity levels.įurthermore, the shale gas producer expects to increase its daily production capacity in Marcellus by up to 200mmcf of gas.Ĭhesapeake Energy also expects sustained acquired production of 800-900mmcf per day with one or two rigs over the next several years.Ĭhesapeake Energy president and CEO Nick Dell’Osso said: “We know the importance of scale and the Chief and Tug Hill assets fit like a glove with our existing position in the northeast Marcellus Shale. Through the acquisition, Chesapeake Energy will add nearly 113,000 net acres in Marcellus, of which more than 90% is held by production.Īccording to the company, the acquisition bolsters its position in Marcellus.

The consideration by the US shale gas producer is made up of $2bn in cash and nearly 9.44 million common shares.Ĭhief and Tug Hill maintain producing assets and an inventory of drilling locations in the Marcellus Shale in Northeast Pennsylvania. (Credit: Anita starzycka from Pixabay)Ĭhesapeake Energy has signed definitive agreements to acquire US-based Chief E&D and associated non-operated interests held by affiliates of Tug Hill for a sum of around $2.5bn.

Through the deal, the US shale gas producer will add approximately 113,000 net acres in Marcellus, of which more than 90% is held by productionĬhesapeake Energy to bolster its position in Marcellus Shale through $2.5bn deal.

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