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CHARLESTON, W.Va. (AP) - After agreeing to pay $2.2 billion in cash for Columbia Natural Resources LLC, Chesapeake Energy Corp. officials said Tuesday that they plan an aggressive expansion of Appalachian natural gas production.
Oklahoma City-based Chesapeake announced the agreement to purchase Columbia from Triana Energy Holdings LLC on Monday. The company expects to boost production by up to 10 percent a year by adding six drilling rigs to the existing four used by Columbia and increasing capital expenditures from $65 million a year to about $200 million.
The Columbia acquisition would make Chesapeake the third-largest holder of natural gas reserves in the United States behind Exxon Mobil Corp. and ConocoPhillips, according to the company. Chesapeake expects the deal will close by Dec. 15.
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