Statoil, Chesapeake adding Marcellus acreage
Statoil ASA has signed an agreement with Chesapeake Energy Corp., Oklahoma City, that will add 59,000 net acres to Statoil’s current 600,000 net acre positions in the Marcellus shale in the Appalachian basin.
By OGJ editors
HOUSTON, Mar. 26 -- Statoil ASA has signed an agreement with Chesapeake Energy Corp., Oklahoma City, that will add 59,000 net acres to Statoil’s current 600,000 net acre positions in the Marcellus shale in the Appalachian basin.
Statoil put the transaction cost at $253 million, or $4,325/acre.
As part of Statoil’s 2008 joint venture agreement with Chesapeake, Statoil has the right to periodically acquire its share of leasehold that Chesapeake continues to acquire in the Marcellus shale. Statoil has now exercised such acquisition rights on a series of Chesapeake Marcellus shale acquisitions.
Statoil has seen encouraging production performance since the entry into the Marcellus play in late 2008. This new acreage is expected to strengthen Statoil’s position and its cooperation with Chesapeake as the largest lease holders in one of the most prospective US shale gas plays.
The acquisition will enable the partnership to optimize its development activity and secure additional developments in the play. Statoil expects to continue to grow its Marcellus position together with Chesapeake (OGJ, Feb. 1, 2010, p. 34).
Andy Winkle, vice-president for the Marcellus Asset, said, “We were an early mover into the Marcellus and we will continue to build a long term position in what we expect will become a legacy asset and reach our goal of 50,000 b/d of oil equivalent production by 2012.”