Chinese Energy Giant to Buy Chesapeake Acreage in OK
Chesapeake Energy selling Oklahoma acreage to Chinese company
By Jay F. Marks
Chesapeake Energy Corp. is selling half of its acreage in northern Oklahoma’s Mississippi Lime play to a Chinese firm as it continues to pare its budget shortfall.
Chesapeake on Monday announced a $1.02 billion joint venture with Sinopec International Petroleum Exploration and Production Corp. Chesapeake will get the bulk of the money in cash when the deal closes.
Sinopec will buy an interest in half of Chesapeake’s 850,000 net acres in the oil-rich Mississippi Lime, then share future exploration and development costs in the play.
“We are excited to announce the execution of our Mississippi Lime joint venture with Sinopec, which moves us further along in achieving our asset sales goals and secures an excellent partner to share the capital costs required to actively develop this very large, liquids-rich resource play,” said Steven C. Dixon, Chesapeake’s chief operating officer.