Total May Be Interested In Chesapeake's Utica Shale Acreage – Bloomberg
Total SA (NYSE: TOT), Europe's third-largest oil company, is said to be considering making an offer for some Chesapeake Energy's (NYSE: CHK) Utica Shale acreage in Ohio, Bloomberg News reported citing a source with knowledge of the matter.
In early November, Oklahoma-based Chesapeake said it reached an agreement to sell a quarter of its 570,000 Utica acres to an unidentified foreign company for $2.14 billion. Chesapeake, the second-largest U.S. natural gas producer, has yet to publicly rule out France's Total as a possible suitor for the Utica acreage.
A transaction would give Oklahoma-City based Chesapeake $640 million in cash and $1.5 billion toward the cost of future drilling, Bloomberg reported.
Total executives have said publicly they are looking to boost the company's shale exposure. The two companies have a history of doing business together. Last year, Total paid $2.25 billion for a 25% stake in Chesapeake's Barnett Shale assets.
Utica is believed to hold 5.5 billion barrels of crude and almost 16 trillion cubic feet of gas.
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