Chesapeake Announces Marcellus Shale Joint Venture

StatoilHydro purchases a 32.5 percent interest in Chesapeake Energy Corp.’s Marcellus Shale assets in Appalachia for $3.375 billion.
Chesapeake retains a 67.5 percent working interest. The assets include about 1.8 million acres, of which StatoilHydro will own approximately 600,000 acres while Chesapeake owns about 1.2 million acres.
StatoilHydro will pay $1.25 billion in cash at closing and will pay $2.125 billion from 2009 to 2012 by funding 75 percent of Chesapeake’s 67.5 percent share of drilling and completion expenditures until the $2.125 billion obligation has been funded. Chesapeake plans to continue acquiring leases in the Marcellus Shale play and StatoilHydro will have the right to a 32.5 percent participation in any such additional leasehold.
Additionally, Chesapeake and StatoilHydro have agreed to enter into an international strategic alliance to jointly explore unconventional natural gas opportunities worldwide. Closing of the transaction and strategic alliance is anticipated to occur by year-end 2008.



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