CNOOC Deal May Energize Chesapeake

CHESAPEAKE ENERGY (ticker: CHK) has the wind in its sails this Columbus Day.

Sunday evening, the natural-gas producer announced that the Chinese government-controlled energy giant CNOOC (ticker: CEO) will buy one third of its 600,000-acre Eagle Ford shale field in southern Texas for $1.08 billion.

CNOOC will then spend another $1.08 billion accessing the difficult oil and gas deposits. It is the first deal in which a Chinese state-run company has taken a stake in an onshore U.S. energy source.

Investors endorsed the deal with their wallets: Chesapeake's shares were up $1.23, or 5.3% to $24.28 in recent trading. But we think they will continue to rise.

Read Full Article from Barron's

- Posted: 2010-10-11 13:19:25

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