Total signs Utica shale JV with Chesapeake

By OGJ editors

Total E&P USA Inc. signed a joint venture agreement with Chesapeake Exploration LLC and affiliates of EnterVest Ltd. in which Total acquires a stake in the Utica shale in Ohio.

Terms call for Total to obtain a 25% share in the transaction signed Dec. 30 and effective as of Nov. 1, 2011. Total paid Chesapeake and EnerVest $700 million in cash.

In addition, Total agreed to pay up to $1.63 billion during 7 years in the form of a 60% carry of Chesapeake and EnerVest’s future drilling and completion expenditures.

The Utica JV covers 619,000 net acres, of which 542,000 net acres are brought by Chesapeake and 77,000 net acres are brought by EnerVest. Total will acquire its 25% share from each of Chesapeake and EnerVest on identical terms, giving a total of 155,000 net acres.

Chesapeake will operate the acreage. Total also will acquire a 25% share in any new acreage that Chesapeake acquires in the Utica play.

As of yearend 2011, 13 wells had been drilled across the acreage. The joint venture plans to ramp up the drilling activities in the coming 3 years with 25 rigs planned by 2014.

Additionally, Total, Chesapeake, and EnerVest have agreed to jointly develop the construction of the necessary midstream assets to transport the production.

Total and Chesapeake already have a joint venture in the Barnett shale play.

Related Articles

Shell submits revisions to its 2015 Chukchi Sea exploration plan

08/29/2014 Shell Offshore Inc. submitted revisions to its previously approved Chukchi Sea exploration plan on Aug. 28, a spokesman for the company confirmed. ...

BLM announces California oil, gas strategy as CCST issues report

08/29/2014 The US Bureau of Land Management’s California state office announced a comprehensive strategy for its oil and gas program in the state after receiv...

Lundin lowers resource estimate for Luno II discovery

08/29/2014 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, has drilled appraisal well 16/4-8 S in the Luno II discovery 15 km south of Edv...

Noble posts drilling results for Katmai, Dantzler prospects in gulf

08/28/2014 Noble Energy Inc., Houston, has advanced its exploration and appraisal drilling operations on the Katmai prospect on Green Canyon Block 40 and the ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected