Chesapeake Energy plans to sell $5B in assets (AP)

NEW YORK (AP) -- Chesapeake Energy Corp. said Monday it will sell all of its assets in a massive natural gas field and stakes in two companies as part of a plan to reduce debt....

[AP] - Chesapeake Energy Corp. said Monday it will sell all of its assets in a massive natural gas field and stakes in two companies as part of a plan to reduce debt.

Chesapeake Energy (CHK) declined 4.7% to close at $27.64,making it the worst performing energy stock in the S&P 500 Index yesterday.

The second-largest producer of natural gas in the United States, Chesapeake Energy Corp., has announced plans to sell part of its Oklahoma shale acreage in order to prop up finances and reduce a massive debt load of around $9.4 billion. Chesapeake announced yesterday that it would sell around 42,000 acres in the Stack field in Oklahoma, which currently produces around 3,800 barrels of oil equivalent per day. The assets will go to Newfield Exploration Co. for an estimated price of $470 million. Furthermore, due to low oil and gas prices, the company…

China Petroleum & Chemical Corp (Sinopec) , Asia’s largest oil refiner, will buy half of Chesapeake Energy Corp’s Mississippi Lime oil and gas properties for $1.02 billion, becoming the latest Chinese company to pick up shale assets in North America. Chesapeake shares were up 2% at $20.90 in premarket trading on Monday. The stock has risen about 23% this year. Output from shale fields in the United States and Canada has jumped over the last three years due to the advent of drilling methods such as hydraulic fracturing.

TEHRAN: India's flagship explorer ONGC is facing a repeat of KG fiasco in Iran as lengthy negotiations on terms may drive it to a point where its discovered gas reserves in Farzad-B field in the Persian Gulf may be drawn out by neighbouring Saudi Arabia. State-owned Oil and Natural Gas Corp (ONGC) alleges that 11.12 billion cubic meters of natural gas worth Rs 11,055 crore has flowed from its idling Krishna Godavari basin blocks in Bay of Bengal blocks to neighbouring KG-D6 fields of Reliance Industries.

Chesapeake Energy Corp. pledged almost all of its natural gas fields, real estate and derivatives contracts to maintain access to a US$4-billion line of credit as the shale gas producer grapples with falling energy prices. The stock was the top performer in the Standard & Poor’s 500 Index.

Chesapeake Energy Corp reported quarterly profit that exceeded Wall Street expectations on Wednesday, as the U.S. oil and gas company produced more crude oil from shale basins like the Eagle Ford in Texas and expenses fell. Chesapeake, under the direction of a board handpicked by its largest investors and interim Chief Executive Steve Dixon, is focused on drilling its best properties and increasing output of more profitable crude oil while lowering spending.