Chesapeake and StatoilHydro finalize Marcellus Shale joint venture
Chesapeake has announced the closing of its Marcellus Shale joint venture transaction with StatoilHydro.
Chesapeake sold a 32.5 % interest in its Marcellus Shale assets in Appalachia for $ 3.375 bn of consideration and
retained a 67.5 % working interest. The assets included approximately 1.8 mm net acres of leasehold, of which
StatoilHydro now owns approximately 0.6 mm net acres and Chesapeake owns approximately 1.2 mm net acres.
Chesapeake received $ 1.25 bn in cash from StatoilHydro at closing and will receive a further $ 2.125 bn from 2009 to
2012 through StatoilHydro funding 75 % of Chesapeake's 67.5 % share of drilling and completion expenditures until the
$ 2.125 bn obligation has been funded. Chesapeake plans to continue acquiring leasehold in the Marcellus Shale play
and StatoilHydro has the right to a 32.5 % participation in any such additional leasehold.
Additionally, Chesapeake and StatoilHydro are evaluating opportunities for their international strategic alliance to
jointly explore unconventional natural gas opportunities worldwide.
Aubrey K. McClendon, Chesapeake's Chief Executive Officer, commented, "We are pleased to close our joint venture with
StatoilHydro and look forward to creating substantial value for both companies in the years ahead."
"We are honoured to partner with one of the leading international oil and gas companies and are excited about the
opportunities to jointly export our world class unconventional natural gas technology for further long-term growth."
