By OGJ editors
HOUSTON, Feb. 21 – BHP Billiton Petroleum has agreed to buy all of Chesapeake Energy Corp.’s interests in the Fayetteville shale gas play in Arkansas for $4.75 billion.
The company will acquire 487,000 net acres, from which production averages about 415 MMcfd of gas equivalent, and 420 miles of pipeline and gathering assets. It said the acquisition includes “development options that will support substantially higher production over a 40 year operating life.”
It’s BHP Billiton’s first investment in the US shale gas business. Chesapeake agreed to provide essential services related to the properties for up to 1 year, for which it will collect a fee.
BHP Billiton will become operator of the properties.