MEMPHIS, Tenn., July 31, 2008 -- International Paper has agreed to sell approximately 13,000 net acres of subsurface mineral rights located in the Haynesville Shale natural gas formation in northwest Louisiana to Chesapeake Energy Corporation (NYSE: CHK) for approximately $263 million, subject to various adjustments at closing. The transaction is expected to close in late August.

"The proceeds will be used to pay down debt," said John Faraci, International Paper's chairman and chief executive officer. "We will continue to look for opportunities to monetize our remaining U.S. forestlands, real estate, and mineral holdings, to strengthen our balance sheet and maximize shareholder value."

This agreement is part of International Paper's transformation plan to focus on global uncoated paper and packaging, as well as xpedx, its North American distribution business.