Chesapeake Energy Corp would sell its properties to Exco Resources Inc for approximately US$1 billion. The deal would include its oil and gas assets in Eagle Ford and Haynesville Shale.

Chesapeake built a huge debt problem due to its rapid development. This year, it would sell US$4 billion to US$7 billion in assets.

"Today's announcement brings our year-to-date asset sales signed or closed to approximately $3.6 billion, which, combined with forecasted net operating cash flow, enables Chesapeake to fully fund its 2013 capital expenditure budget," stated CEO Doug Lawler. "Additional asset sales contemplated for later this year may reduce long-term debt and further enhance our financial liquidity."

Chesapeake said that it would gain around 90% of the earnings from the sale at closing.

The fields from Chesapeake would provide Exco a producing site and a possibly profitable drilling spots in the future. Dallas' Exco said that it anticipated finalizing the purchase this July.