Reuters: Mergers News: UPDATE 1-Chesapeake planning deals in coming quarters

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UPDATE 1-Chesapeake planning deals in coming quarters Mar 26th 2012, 20:30 Mon Mar 26, 2012 4:30pm EDT NEW ORLEANS, March 26 (Reuters) - Chesapeake Energy Corp expects to strike a joint venture for its acreage in the Mississippi Lime formation in Oklahoma in the second quarter, according to a presentation on Monday by the company's chief executive. Such a deal is needed by the U.S. exploration and production company to help close a funding gap this year that some analysts estimate could climb to $6 billion. Chesapeake has previously said it would sell assets and seek partners for its oil and shale gas acreage to fatten its coffers. The Mississippi Lime joint venture would consist of a large deal covering 2 million acres or several smaller deals, Aubrey McClendon, Chesapeake's chief executive officer, told the Howard Weil energy conference. Chesapeake now expects to sell its assets in the Permian Basin assets in Texas and New Mexico rather than find a joint venture partner as it had initially said. "I think we'll probably end up selling our Permian assets in total," McClendon said. The Permian asset sale could occur in the third quarter, while the company would likely announce a way to monetize its oil services business and its 30 percent stake in privately held oilfield service company Frac Tech International in the fourth quarter, McClendon told investors. Shares of Chesapeake closed down nearly 2 percent at $24.21 on the New York Stock Exchange.

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