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American shale gas producer Chesapeake Energy  has agreed to divest a portion of its remaining Eagle Ford assets in South Texas to Ineos Energy for $1.4bn.

The deal covers 172,000 net acres and approximately 2,300 wells in the black oil portion of the gas producer’s Eagle Ford assets, primarily in Dimmit, LaSalle, and McMullen counties.

The sale also includes related property, plants, and equipment.

The properties covered under the sale reported average net daily production rates of approximately 36,000 barrels of oil equivalent (boe) (81% liquid) at the end of 2022.

As of 2022, the properties had net proven reserves of approximately 144 million boe.

Chesapeake president and CEO Nick Dell’Osso said: “Today marks another important step on our path to exiting the Eagle Ford as we focus our capital on the premium rock, returns, and runway of our Marcellus and Haynesville positions.

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“We are pleased to have secured an aggregate of $2.825bn to date and remain actively engaged with other parties regarding the rest of our Eagle Ford position.”

The acquisition will mark Ineos Energy’s foray into the US onshore oil and gas market.

Ineos will make a $1.175bn payment to Chesapeake upon the closing of the transaction. An additional $225m will be paid in instalments.

Ineos Energy chairman Brian Gilvary said: “The deal marks our entry into the US market and is another significant step in the INEOS Energy journey.

“Over the last two decades, US onshore oil and gas production has provided security of supply for the global market and competitive advantage for US industry.”

Subject to customary adjustments, the transaction is planned to close in the second quarter of 2023.

It will have an effective date of 1 October 2022.

Chesapeake plans to use the proceeds from the transaction to reduce its debt and buyback shares.

In January 2023, Chesapeake agreed to sell part of its south Texas operations to privately owned Wildfire Energy for $1.43bn.