BRNC Bronco Drilling Company, Inc. (MM)

   DOW JONES NEWSWIRES 
 

Chesapeake Energy Corp. (CHK) has extended its tender offer for Bronco Drilling Co. (BRNC) shares as the companies said they have agreed to a memorandum of understanding regarding the key terms of a shareholder lawsuit settlement.

Chesapeake, the most active driller in the U.S., agreed last month to pay $315 million for Bronco and its fleet of 22 rigs. The target provides contract land drilling to oil and natural-gas exploration companies.

The tender offer will expire at midnight Eastern time on May 31, eight days later than originally planned, which the companies said will give Bronco shareholders time to consider additional disclosures related to the settlement terms. The companies didn't detail the settlement terms in a statement Wednesday.

Chesapeake shares rose 1.4% to $29.51 in recent trading. Bronco was up 2 cents at $10.99, compared with the $11 offer price.

-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com