Sinopec deal boosts Mississippi Lime shale play
The Chinese state-run company makes a $1.02 billion deal with Chesapeake Energy in the southern US, writes Shaun Polczer
SINOPEC'S $1.02 billion deal with Chesapeake Energy to
enter the Mississippian Lime tight oil play in the southern US
has energised interest in a region that some say will prove
more prolific than the Bakken shale in North Dakota. Chinese
state-run Sinopec has agreed to buy a 50% interest in 850,000
acres of Chesapeake’s existing oil and gas leases
in Oklahoma. The acreage is producing around 34,000 barrels of
oil equivalent per day and held 140 million barrels of oil
equivalent of net proved reserves as of 31 December 2012.
Sinopec will fund the purchase with...