Chesapeake may attract Asian investors to assets

* No more offerings planned in near future

* Could attract Asian investors to commercial bank group
(In U.S. dollars)

CALGARY, Alberta, July 14 (BestGrowthStock) – Chesapeake Energy
Corp (CHK.N: ) may attract more Asian investors to its banking
group or as buyers of interests it has on the block, but the
U.S. natural gas producer has no immediate plans for another
stock sale, an executive said on Wednesday.

Chesapeake, which last month sold $900 million of preferred
shares to a investment group that included Asian sovereign
wealth funds, aims to sell a 20 percent interest in its
Marcellus shale gas operations in the Eastern United States and
find a partner for its Eagle Ford shale play in Texas.

“We’re not looking to secure more incremental capital in
terms of debt or equity securities in aggregate,” Chesapeake
Vice-President Jeff Mobley said after speaking to a TD Newcrest
investor conference in Calgary, Alberta.

“It’s possible that Asian investors might one day
participate in our bank group. Our preferred capital is all the
equity we intend to raise in the near future, but it’s possible
that some Asian investors might look to participate in some of
the monetization transactions.”

The joint venture plans are part of a major financial
initiative the company announced in May aimed at lifting the
stock price and reducing debt amid weak natural gas prices.

In June, China Investment Corp (Read more about U.S. companies investment into China), Korea Investment Corp and
Singapore state investor Temasek Holdings [TEM.UL] were among
investors in Chesapeake’s preferred offering.

“We recognize that the center of the financial world is
gravitating more and more to Asia and we think it’s prudent to
begin to develop relationships with investors in Asia,” Mobley

Early this year, Chesapeake signed a $2.25 billion deal
with French oil major Total SA (TOTF.PA: ) to help develop its
Barnett Shale properties in Texas.

It gave Total a first look at the other interests it is
offering, but as a courtesy rather than as a right of first
refusal, Mobley said. Chesapeake is in talks with others as

It hopes to land a partner for the Eagle Ford shale
development by the end of the current quarter or early in the
fourth, he said.

Chesapeake shares were up 5 cents at $21.46 on the New York
Stock Exchange.
(Reporting by Jeffrey Jones; editing by Peter Galloway)

Chesapeake may attract Asian investors to assets