Chesapeake taps expanding shale oil demand |
| National Post - Sep 13, 2012 |
Chesapeake Energy Corp. negotiated a higher-than-expected price for oil fields in the U.S. Southwest as the gas driller exploited a growing appetite for shale assets among the world’s largest energy explorers.
Chesapeake agreed yesterday to sell drilling rights and wells on about 1 million acres in the Permian Basin of Texas and New Mexico for $3.3 billion in three separate transactions with Royal Dutch Shell Plc, Chevron Corp. and EnerVest Ltd. The proceeds equate to $3,200 an acre, which exceeds the $3,094 an acre in implied value that ITG Investment Research estimated a larger group of assets in the region would fetch.
The Permian Basin, a 300-mile long geologic formation that has been gushing oil and gas for more than 90 years, is attracting renewed interest from major international oil producers who quit the region in the mid-1980s as falling oil prices made aging fields unprofitable to operate. Hydraulic fracturing and horizontal drilling techniques have now opened shale formations that geologists formerly wrote off as impermeable.
Read Full Article from National Post
- Posted: 2012-09-13 23:10:29
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