Chesapeake’s McClendon Taps Expanding Shale Oil Demand: Energy
This article is for subscribers only.
Chesapeake Energy Corp. negotiated a higher-than-expected price for oil fields in the U.S. Southwest as the natural-gas driller exploited a growing appetite for shale assets among the world’s largest energy explorers.
Chesapeake agreed yesterday to sell drilling rights and wells on about 1 million acres in the Permian Basin of Texas and New Mexico for $3.3 billion in three separate transactions with Royal Dutch Shell Plc, Chevron Corp. and EnerVest Ltd. The proceeds equate to $3,200 an acre, which exceeds the $3,094 an acre in implied value that ITG Investment Research estimated a larger group of assets in the region would fetch.