Chesapeake Energy (ticker: CHK, exchange: New York Stock Exchange (.N))
News Release -
25-Nov-2008
Chesapeake Energy Corporation Announces Closing of Marcellus Shale Joint Venture with StatoilHydroPrinter Friendly Version (pdf format)
OKLAHOMA CITY, Nov 25, 2008 (BUSINESS WIRE) -- Chesapeake Energy Corporation (NYSE:CHK) today announced the closing of
its Marcellus Shale joint venture transaction with StatoilHydro
(NYSE:STO, OSE:STL). Chesapeake sold a 32.5% interest in its Marcellus
Shale assets in Appalachia for $3.375 billion of consideration and
retained a 67.5% working interest. The assets included approximately 1.8
million net acres of leasehold, of which StatoilHydro now owns
approximately 0.6 million net acres and Chesapeake owns approximately
1.2 million net acres.
Chesapeake received $1.25 billion in cash from StatoilHydro at closing
and will receive a further $2.125 billion from 2009 to 2012 through
StatoilHydro funding 75% of Chesapeake's 67.5% share of drilling and
completion expenditures until the $2.125 billion obligation has been
funded. Chesapeake plans to continue acquiring leasehold in the
Marcellus Shale play and StatoilHydro has the right to a 32.5%
participation in any such additional leasehold.
Additionally, Chesapeake and StatoilHydro are evaluating opportunities
for their international strategic alliance to jointly explore
unconventional natural gas opportunities worldwide.
Aubrey K. McClendon, Chesapeake's Chief Executive Officer, commented,
"We are pleased to close our joint venture with StatoilHydro and look
forward to creating substantial value for both companies in the years
ahead. We are honored to partner with one of the leading international
oil and gas companies and are excited about the opportunities to jointly
export our world class unconventional natural gas technology for further
long-term growth."
Chesapeake was advised on the transaction by Jefferies Randall & Dewey
of Houston, Texas.
Chesapeake Energy Corporation is the largest producer of natural gas
in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and
corporate and property acquisitions in the Fort Worth Barnett Shale,
Fayetteville Shale, Haynesville Shale, Marcellus shale, Mid-Continent,
Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas
Gulf Coast and Ark-La-Tex regions of the United States. Further
information is available at www.chk.com.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. See "Risk Factors" in the
company's 2007 Annual Report on Form 10-K and Quarterly Report on Form
10-Q for the 2008 third quarter and other filings with the Securities
and Exchange Commission for a discussion of risk factors that affect its
business and could affect the referenced joint venture and strategic
alliance. Chesapeake undertakes no obligation to publicly update
or revise any forward-looking statements.
SOURCE: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
Senior Vice President -
Investor Relations and Research
jeff.mobley@chk.com
or
Marc Rowland, 405-879-9232
Executive Vice President
and Chief Financial Officer
marc.rowland@chk.com
|
Chesapeake Energy
