El Paso plans to sell 1,600 boe/d in Powder River Basin. Expected proceeds may be around $130-$160 million.

Scotia Waterous has been retained as the exclusive financial advisor by El Paso Corporation to divest its interests in the House Creek Field area of the Powder River Basin, Wyoming. The assets include oil-weighted production of approximately 1,600 boe/day from the Sussex and Parkman and significant undeveloped Niobrara acreage. The value of the assets put up for sale may be around $130-$160 million based on $80,000-$100,000/boe.

Bids due by late July, 2011.

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The following table shows Scotia Waterous-advised deals since the beginning of 2010.

Source: Derrick Petroleum E&P transactions Database

Chesapeake’s “25/25” plan for 2011-2012; Plan to increase hydrocarbon production by 25% and to reduce long-term debt by 25% over 2010

Chesapeake, currently the number two producer of natural gas in the US and number one natural gas driller with respect to activity also has made a major change to its business strategy. The company is planning a two-year (2011-12) hydrocarbon growth rate of 25%, net of asset sales (reduced from prior target of 30 - 40%). The company is planning to increase liquids production by ~190% and natural gas production by ~6%. Expected hydrocarbon production in 2011 is ~3.065 bcfepd and 2012 is ~3.560 bcfepd.

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Chesapeake deals in 2011 as part of implementing “25/25” plan:

Chesapeake and CNOOC formed a JV for the Niobrara Oil Shale, whereby CNOOC owned 33.3% undivided interest in Chesapeake’s 800,000 net oil and natural gas leasehold acres in the Denver-Julesburg (DJ) and Powder River Basins in northeast Colorado and southeast Wyoming.

Source: Derrick Petroleum E&P Transactions Database

Chesapeake sold all its interests in Fayetteville Shale, Central Arkansas to BHP, including $500 million for midstream interests for $4.75 billion.

Source: Derrick Petroleum E&P Transactions Database

Announced details of near-term asset monetization plans which might exceed pre-tax proceeds target of $5.0 billion

- Plan to monetize 25.8% equity investment in Frac Tech Holdings LLC

- Plan to monetize 20.0% equity investment in Chaparral Energy, Inc.

- Plan to use sale proceeds to retire $2.0 - $3.0 billion of senior notes and to also reduce bank credit facility borrowings

Source: Derrick Petroleum E&P Transactions Database

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