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OKLAHOMA CITY, Jan 05, 2009 (BUSINESS WIRE) -- Chesapeake Energy Corporation (NYSE:CHK) today announced it has sold
certain Chesapeake-operated long-lived producing assets in the Anadarko
and Arkoma Basins in its fourth volumetric production payment
transaction (VPP). Through the VPP, Chesapeake conveyed a royalty
interest to investors associated with Argonaut Private Equity. The
purchase was financed by GS Loan Partners, an affiliate of The Goldman
Sachs Group, Inc. (NYSE:GS). The assets include proved reserves of
approximately 98 bcfe and current net production of approximately 60
mmcfe per day for proceeds of $412 million, or $4.20 per mcfe.
Chesapeake retained drilling rights on the properties below currently
producing intervals. The company previously announced its intention to
complete a VPP by year-end 2008 as part of its plan to build larger cash
reserves over the next two years. The transaction, which closed on
December 31, 2008, will be treated as a sale for accounting purposes and
the company's proved reserves will be reduced accordingly. Chesapeake
was advised on the transaction by Jefferies Randall & Dewey of Houston,
Texas.
Chesapeake Energy Corporation is the largest producer of natural gas
in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and
corporate and property acquisitions in the Barnett Shale, Haynesville
Shale, Fayetteville Shale, Marcellus Shale, Anadarko Basin, Arkoma
Basin, Appalachian Basin, Permian Basin, Delaware Basin, South Texas,
Texas Gulf Coast and East Texas regions of the United States. Further
information is available at www.chk.com.
Argonaut Private Equity is a diversified global private equity fund
with more than $3.5 billion under management. Argonaut exercises wide
discretion on investment size, stage, sector and geography. Its equity
investments span such diverse markets as alternative energy, technology,
financial services, media, telecommunications, medical devices,
aviation, retail and healthcare. Argonaut's portfolio includes
investments in the United States, India, China, Israel, Japan, Eastern
Europe, the Netherlands and Australia.
The Goldman Sachs Group, Inc. is a bank holding company and a leading
global investment banking, securities and investment management firm.
Established in 1986, the firm's Principal Investment Area is part of
the Merchant Banking Division and includes the GS Capital Partners, GS
Loan Partners and GS Mezzanine Partners funds. GS Loan Partners
I, with $10.5 billion in equity and leverage commitments, is Goldman
Sachs' first fund dedicated to providing senior secured loans and
investing in senior debt and is one of the largest funds dedicated to
the senior secured loan asset class across North America and Europe. For
more information, please visit www.gs.com/pia.
SOURCE: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Investor Contact:
Jeffrey L. Mobley, CFA, 405-767-4763
Senior Vice President -
Investor Relations and Research
jeff.mobley@chk.com
or
Media Contact:
Jim Gipson, 405-935-1310
Director - Media Relations
jim.gipson@chk.com