Chesapeake Energy Corp. on Monday announced the closing of its $1 billion joint venture with China's Sinopec International Petroleum Exploration and Production Corp.
Sinopec acquired a 50 percent stake in Chesapeake's acreage in northern Oklahoma's Mississippi Lime play in the deal, which was announced Feb. 25.
Chesapeake received about 93 percent of the $1.02 billion Sinopec paid in the deal when it closed.
Assets associated with the joint venture produced about 9,600 barrels of liquids and 54 million cubic feet of natural gas a day in the first quarter.
The companies will share all future exploration and development costs in the joint venture.
Chesapeake, as operator of the project, will conduct all leasing, drilling, completion, operations and marketing activities for the joint venture.
“Chesapeake is pleased to have Sinopec as our partner in the Mississippi Lime play, and we look forward to efficiently developing and growing this asset for many years to come,” CEO Doug Lawler said.
Chesapeake has been selling assets for much of the past two years to pay off debt and fill a budget shortfall. The company, which hopes to bring in as much as $7 billion this year, now has raised $2.3 billion.