Chesapeake Makes Bigger Push in Permian With $510 Million Deal

Oil Daily, The, December, 2003 by Andrew Kelly

HOUSTON -- Gas producer Chesapeake Energy is spending $510 million to acquire properties that will expand its footprint in the Permian Basin of West Texas and Southeast New Mexico and add more modestly to its core operations in the Mid- Continent region.

Most of the money will be spent on the acquisition of privately owned Concho Resources, based in Midland, Texas, for $420 million, with $90 million allocated to two smaller acquisitions.

Chief Executive Aubrey McClendon said the Concho deal, with its Permian Basin focus, and Chesapeake's recent $200 million acquisition of gas properties in South Texas, do not herald the start of a major drive to expand outside the Mid- Continent.

"We will continue to look at assets in all three of those areas, but...