Chesapeake Energy Corp. continues to reap the rewards of a 2008 deal with Norwegian oil giant Statoil.
Statoil has agreed to pay Chesapeake an additional $253 million for about 59,000 acres of leasehold in the Marcellus Shale, the company announced Friday.
"This type of transaction was contemplated in our original agreement with Statoil as we lease additional Marcellus acreage in Pennsylvania and West Virginia and it further validates the developing high potential of the play,” Chesapeake spokesman Jim Gipson said.
The deal boosts Statoil’s holdings in the Marcellus to about 600,000 net acres.
"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 boepd (barrels of oil equivalent per day) production by 2012,” said Andy Winkle, vice president for Statoil’s Marcellus assets.
Statoil negotiated the right to periodically acquire a share of leasehold Chesapeake continues to amass in the Marcellus as part of the companies’ $3.4 billion deal in 2008.
The deal gave Chesapeake $1.25 billion in cash to help develop 1.8 million acres in the Marcellus, while Statoil agreed to pick up much of Chesapeake’s future drilling costs through 2012.