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Article: BP to buy 25 percent stake in Chesapeake's holdings.(ENERGY)
- Article from:
- Arkansas Business
- Article date:
- September 8, 2008
- Author:
CopyrightCOPYRIGHT 2008 Journal Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Chesapeake Energy Corp. of Oklahoma City and BP America said the two companies have executed a letter of intent for BP America to help develop Chesapeake's acreage in the Fayetteville Shale Play. BP America of Houston will acquire 25 percent of Chesapeake's assets in Arkansas for $1.9 billion.
Currently, Chesapeake's assets in Arkansas produce about 180 mcf per day. Chesapeake's holdings include about 540,000 net acres, which the companies believe could support drilling up to 6,700 wells. The deal is expected to close this month.
In August, Chesapeake announced in an investor presentation ...