Sinopec and US energy firm organize JV

Deal is worth US$1.02 billion.

Chesapeake Energy Corporation and Sinopec International Petroleum Exploration and Production Corporation have closed a joint venture in northern Oklahoma's Mississippi Lime play.

Sinopec acquired a 50% stake in Chesapeake's acreage in northern Oklahoma's Mississippi Lime play in the deal. Chesapeake received about 93% of the US$1.02 billion Sinopec paid in the deal when it closed.

Assets associated with the joint venture produced about 9,600 barrels of liquids and 54 million cubic feet of natural gas a day in the first quarter. The companies will share all future exploration and development costs in the joint venture.

As operator of the project, Chesapeake will conduct all leasing, drilling, completion, operations and marketing activities for the joint venture.