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20. Subsequent Events
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Fayetteville Shale Asset Sale
On February 21, 2011, we entered into a purchase and sale agreement with BHP Billiton Petroleum, a
wholly owned subsidiary of BHP Billiton Limited, to sell all of our Fayetteville Shale assets in Central Arkansas
for $4.75 billion in cash before certain deductions and standard closing adjustments. The assets include
approximately 487,000 net acres of leasehold and producing natural gas properties and midstream assets with
approximately 420 miles of pipeline. In the Fayetteville Shale, our current net production is approximately 415
mmcfe per day. As part of the transaction, Chesapeake has agreed to provide essential services for up to one
year for BHP Billiton’s Fayetteville properties for an agreed-upon fee. Closing of the transaction is subject to
customary conditions, including filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and
with the Committee on Foreign Investment in the United States. Closing is expected to occur in the first half of
2011.
Niobrara Project Cooperation Agreement
On February 16, 2011, CNOOC International Limited, a wholly owned subsidiary of CNOOC Limited,
purchased a 33.3% undivided interest in our 800,000 net natural gas and oil leasehold acres in the DJ and
Powder River Basins in northeast Colorado and southeast Wyoming. The consideration for the transaction was
$570 million in cash. In addition, CNOOC has agreed to fund 66.7% of our share of drilling and completion
costs until an additional $697 million has been paid, which we expect to occur by year-end 2014. CNOOC also
has the right to a 33.3% participation in any additional leasehold we acquire in the Niobrara Shale.
Senior Notes Issuance
On February 11, 2011, we issued $1.0 billion of 6.125% Senior Notes due 2021 in a registered public
offering. We used the net proceeds of $977 million from the offering to repay indebtedness outstanding under
our revolving bank credit facility.
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