Parallel Petroleum Corp. on Thursday said Chesapeake Energy Corp. will take over operations of Parallel's West Fork Barnett Shale gas project after buying a majority stake in the project.
Chesapeake bought a 61 percent stake working interest in West Fork, located east of Fort Worth, Texas, from Dale Gas Partners LP and affiliates, Parallel said. Parallel said it decided to keep its 37 percent non-operated working stake in the project.
Parallel said it has agreed to the sale as a limited partner in West Fork Pipeline Company I, LP, and will receive about $16 million fropm the deal. The company expects to record a $10 million pre-tax gain from the West Fork sale.
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