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BP to acquire Chesapeake's Woodford shale interests

By OGJ editors
HOUSTON, July 22 -- BP America Inc. agreed to acquire all of Chesapeake Energy Corp.'s interests in 90,000 net acres of leasehold and producing natural gas properties in the Arkoma basin Woodford shale play for $1.75 billion.

The properties are in the Oklahoma counties of Atoka, Coal, Hughes, and Pittsburg. They currently produce 50 MMcfd of gas equivalent. Closing is expected on Aug. 8.

Aubrey K. McClendon, Chesapeake's chief executive officer, said, "There was substantial industry interest in our Woodford shale asset package. This transaction completes another aspect of our asset monetization program and enables Chesapeake to redeploy capital to our Haynesville, Barnett, and Marcellus shale plays and further improves the company's capital structure."

BP said the acquisition complements its extensive holdings in unconventional gas plays.

"This acquisition has the potential to double our existing production of over 200 MMcfd from our Arkoma operations," said Andy Inglis, BP's chief executive of exploration and production.

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