Deals - Joint Ventures | Deals - Acquisition, Mergers, Divestitures | Capital Markets | Private Equity Activity
Chesapeake, Sinopec Ink $1.02B Mississippi Lime JV
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Chesapeake Energy Corporation and Sinopec International Petroleum Exploration and Production Corporation have reported the execution of an agreement which provides for Sinopec to purchase a 50% undivided interest in 850,000 of Chesapeake’s net oil and natural gas leasehold acres in the Mississippi Lime play in northern Oklahoma (425,000 acres net to Sinopec).
The total consideration for the transaction will be $1.02 billion in cash, of which approximately 93% will be received upon closing.
Payment of the remaining proceeds will be subject to certain customary title contingencies. Production from these assets (including Mississippi Lime and other formations), net to Chesapeake’s interest and prior to Sinopec’s purchase, averaged approximately 34 thousand barrels of oil equivalent per day…
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