Shares in Chesapeake Energy Corporation (NYSE:CHK) gained after the firm told investors it has agreed to sell some of its acreage in the Haynesville Shale area.
The energy firm said on Monday that it would sell the asset for US$450mln to a private company.
Chespeake said the 78,000 acres of land, which are located in northern Louisiana, are host to 250 wells producing around 30mln cubic feet of gas per day.
The Oklahoma City-based business said it expects the sale to close in the first quarter of 2017.
Once this sale go through, Chesapeake will have raised around US$2bn from selling off various assets as it tries to reduce its crippling debt of almost US$9bn.
The firm added that it was also looking to sell off more assets in the Haynesville Shale field this year, although it is still looking to retain around 250,000 net acres in the area.
Shares were up almost 5% to US$7.55.