Chesapeake closes on acquisition of Vine Energy
US company Chesapeake Energy said November 1 its position in the Haynesville shale play improved substantially with the close of its previously announced acquisition of Vine Energy.
Chesapeake Energy put down about $2.2bn to acquire Vine in August. Vine held acreage in the Haynesville basin in Louisiana, one of the most lucrative of the Lower 48 shale basins.
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“We are pleased to integrate the outstanding Vine operations and assets into our portfolio, strengthening our position in the Haynesville Shale with over 900 additional drilling locations, immediately improving our free cash flow profile and accelerating a significant return of capital to our shareholders at a time of favorable natural gas prices,” Chesapeake CEO Nick Dell’Osso said.
The Haynesville shale is the second-largest natural gas producer behind the Appalachia basin. The US Energy Information Administration expects November production from Haynesville to reach 19.1bn ft3/day, a slight increase from October.
Vine first entered the Haynesville shale in 2014 after acquiring acreage from Shell and held roughly 125,000 surface acres in its current portfolio. The company in March launched its initial public offering, releasing 18.75mn shares at $17.50 each.