Chesapeake Energy (CHK) announced the sale of its leasehold and other properties in the Fayetteville Shale in Arkansas to BHP Billiton Petroleum (BHP) for $4.75 billion.
Chesapeake Energy reported current net production of approximately 415 million cubic feet of natural gas equivalent per day from its Fayetteville Shale properties. The deal also included 420 miles of pipeline.
Chesapeake Energy had proved reserves of 2.5 Tcf at 9/30/2010, indicating a value of $1.93 per mcf of proved reserves. However, the pipeline assets are included in the sale price, so if you back out approximately $300 million in value for these assets, the proved reserves are valued at $1.82 per mcf.