A. Lee Graham
Reporter
Chesapeake Energy Corp. has completed its previously announced Mississippi Lime joint venture with Chinese oil company Sinopec International Petroleum Exploration and Production Corp.
Oklahoma City-based Chesapeake sold a 50 percent undivided interest in about 850,000 acres in northern Oklahoma for total consideration of $1.02 billion in cash, of which about 93 percent was received at closing.
“Chesapeake is pleased to have Sinopec as our partner in the Mississippi Lime play, and we look forward to efficiently developing and growing this asset for many years to come,” said Chesapeake CEO Doug Lawler in a news release.
Assets associated with the joint venture produced about 9,600 barrels of liquids and 54 million cubic feet of natural gas per day during first-quarter 2013. All future exploration and development costs in the joint venture will be shared proportionately between the parties.
As project operator, Chesapeake will conduct all leasing, drilling, completion, operations and marketing activities for the joint venture.
Serving as financial adviser to Chesapeake in the joint venture was Jefferies & Co. Inc.
Chesapeake Energy Corp., whose interests include the Barnett Shale in North Texas, develops unconventional natural gas and oil fields nationwide. More information is available at www.chk.com.