Skip to comments.Sinopec completes Chesapeake deal
Posted on 06/30/2013 7:59:47 PM PDT by TexGrill
BEIJING, June 29 (Xinhua) -- China Petrochemical Corporation (Sinopec) said on Saturday that it has completed the purchase of 50 percent of Chesapeake's share in its Mississippi Lime assets for 1.02 billion U.S. dollars.
Chesapeake is the second-largest natural gas developer in the United States and its Mississippi Lime oil and natural gas assets are in northern Oklahoma.
Sinopec signed the agreement with Chesapeake on Feb. 23 through its wholly-owned subsidiary Sinopec International Petroleum Exploration and Production Corporation.
The deal means Sinopec acquires 425,000 acres (171,991 hectares) in the Mississippi Lime shale formation, with estimated proven and probable (2P) oil equivalent of 245 million barrels.
Sinopec bought one-third of the Devon Energy Corporation's gas reserves for 2.5 billion U.S.dollars in 2012.
(Excerpt) Read more at news.xinhuanet.com ...
Mississippi Lime horizontal well costs are $2.4 and $3.5 million. Well design varies from 2500 to 6000 foot laterals utilizing 6 to 20 frac stages. Horizontal EURs run from 300 to 500 MBoe. This technique produces a much higher percentage of natural gas, as an average well will produce from 211,000 to 300,000 barrels of oil.
The Chinese are buying to learn our fracking technology real real cheap plus they might make some money on the natural gas