Thursday, July 17, 2008

Chesapeake Sells Oklahoma Interests to BP

This afternoon, Chesapeake announced that it has sold all of its interests in the Arkoma Basin Woodford Shale Play in Oklahoma, which represents approximately 90,000 net acres. These properties have been producing approximately 50 MMcf per day.

Chesapeake received $1.75 billion in cash from BP. The company intends to redeploy the capital in its Haynesville, Barnett and Marcellus shale plays.

It is interesting news that Chesapeake would give up its interests in its own backyard to focus on these other plays. It really shows their desire to move fast and heavy. They've got a ton of cash to deploy and a somewhat more narrow focus. Should be interesting.

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