bhp aquisition in shale gas

It seems like there are big buyers still very happy to pay up for proven producing assets. Now if only RFE could get some production ramped up, we might be getting onto some radar screens.


BHP Billiton today announced it has agreed to acquire all of Chesapeake Energy
Corporation?s (Chesapeake) interests in the Fayetteville Shale, USA, including the midstream
pipeline system, for US$4.75 billion, which BHP Billiton expects to fund from the Group?s
cash resources.
The acquisition is consistent with BHP Billiton?s strategy of investing in large, long-life, low
cost assets with significant volume growth from future development. It also supports our goal
of diversification by geography, customer and product. BHP Billiton will become the operator
of Chesapeake?s operated interests in the field.
Chesapeake?s Fayetteville shale assets include approximately 487,000 acres of leasehold
and producing natural gas properties located in Arkansas, USA. This is the second largest
position in one of the largest gas fields in the world. This acquisition will increase BHP
Billiton?s net reserve and resource base by 45 per cent. These assets currently produce over
400 million cubic feet of gas per day and include development options that will support
substantially higher production over a 40 year operating life. BHP Billiton and Chesapeake
have also agreed a 12 month services agreement to ensure the safe transfer of operations to
BHP Billiton.