Shell Buys Shale Assets from Chesapeake Energy

Shell Buys Shale Assets from Chesapeake Energy

The acquisition covers 618,000 net acres in the Permian Basin in West Texas that currently produces some 26,000 barrels of oil equivalent per day and has significant growth potential.

Royal Dutch Shell (IW 1000/1) said Wednesday it had agreed to buy shale assets for $1.935 billion from Chesapeake Energy, as part of vast divestment plans.

The company said the purchase was a “further step to build a leading portfolio of shale assets rich in oil and natural gas liquids," adding the deal would close within 30 days.

“This acquisition provides both existing production and near-term growth potential from a proven resource, as well as promising opportunities for expansion,” the company added.

The acquisition covers 618,000 net acres in the Permian Basin in West Texas that currently produces some 26,000 barrels of oil equivalent per day and has significant growth potential, a company statement said.

Copyright Agence France-Presse, 2012

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