Chesapeake Energy Corp. (NYSE: CHK) has agreed to sell oil and gas assets in the Eagle Ford and Haynesville shales to a unit of Dallas-based Exco Resources Inc. for about $1 billion.

The sale is part of Oklahoma City-based Chesapeake’s plans to sell up to $7 billion in assets to raise cash. The company has long-term debt of $13.4 billion and faces a $3.5 billion funding gap this year, Reuters reports.

The deal, which is expected to close in the third quarter, brings Chesapeake’s asset sales for the year to $3.6 billion, CEO Doug Lawler said in a statement.

The Eagle Ford assets encompass 55,000 acres in Zavala, Dimmit, LaSalle and Frio counties in Texas and include 120 producing wells with average net daily production of approximately 6,100 barrels of oil equivalent during the month of May.

The Haynesville assets encompass 9,600 acres in the Desoto and Caddo parishes of Louisiana and include 11 units operated by Chesapeake and 42 units operated by Exco with average net daily production of 114 million cubic feet of natural gas equivalent during the month of May.

Chesapeake’s major competitor is Irving, Texas-based Exxon Mobil Corp. (NYSE: XOM), which has significant operations in Houston.

Sourced from: Houston Business Journal