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OKLAHOMA CITY & HOUSTON--(BUSINESS WIRE)--July 17, 2008--In BW6012
issued July 17, 2008: Third graph, first and second sentences should
read: "This purchase is a strategic entry into an attractive and
established shale basin with potential resources of up to 2 trillion
cubic feet. It complements our extensive unconventional gas plays
throughout North America," said Andy Inglis, BP's chief executive of
Exploration and Production (sted "This purchase is a strategic entry
into an attractive and established shale basin and complements our
current and the future development of our extensive unconventional gas
plays throughout North America," said Andy Inglis, BP's chief
executive of Exploration and Production).
The corrected release reads:
CHESAPEAKE AND BP ANNOUNCE ARKOMA BASIN WOODFORD SHALE TRANSACTION
Chesapeake Energy Corporation (NYSE:CHK) and BP America Inc.
(NYSE:BP) today announced that BP has agreed to acquire all of
Chesapeake's interests in approximately 90,000 net acres of leasehold
and producing natural gas properties in the Arkoma Basin Woodford
Shale play for $1.75 billion in cash. The properties, which are
located in Atoka, Coal, Hughes and Pittsburg counties, Oklahoma are
currently producing approximately 50 million cubic feet of natural gas
equivalent (mmcf) per day. The companies anticipate closing the
transaction on August 8, 2008.
Aubrey K. McClendon, Chesapeake's Chief Executive Officer,
commented, "There was substantial industry interest in our Woodford
Shale asset package and we are pleased to announce the sale of these
properties to BP. This transaction completes another aspect of our
asset monetization program and enables Chesapeake to redeploy capital
to our Haynesville, Barnett and Marcellus Shale plays and further
improves the company's capital structure. BP has long had a leading
position in the Oklahoma natural gas industry and we are very pleased
to see its deepening commitment to Oklahoma. We look forward to
working with BP on other projects in the future, in addition to
current projects such as our Anadarko Basin Joint Venture in which we
are drilling a series of Deep Springer wells across a 155 square mile
area of mutual interest in Washita County, Oklahoma. Our first well
has been logged and looks excellent."
"This purchase is a strategic entry into an attractive and
established shale basin with potential resources of up to 2 trillion
cubic feet. It complements our extensive unconventional gas plays
throughout North America," said Andy Inglis, BP's chief executive of
Exploration and Production. "This acquisition has the potential to
double our existing production of over 200 mmcf per day from our
Arkoma operations."
Meagher Oil & Gas Properties, Inc. acted as advisor to Chesapeake.
Chesapeake Energy Corporation is the third-largest producer of
natural gas in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and
corporate and property acquisitions in the Fort Worth Barnett Shale,
Fayetteville Shale, Haynesville Shale, Mid-Continent, Appalachian
Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast
and Ark-La-Tex regions of the United States. Further information is
available at www.chk.com.
BP is one of the world's largest oil and gas companies with
operations in more than 100 countries across six continents. The
company's main businesses are exploration and production of oil and
gas; refining, manufacturing and marketing of oil products and
petrochemicals; transportation and marketing of natural gas. Further
information is available at www.bp.com.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. The companies believe that
their expectations are based on reasonable assumptions. No assurance,
however, can be given that such expectations will prove to have been
correct. The sale transaction announced in the news release is subject
to normal closing conditions, and a number of factors could cause
actual results in the companies' Anadarko Basin joint venture to
differ materially from anticipated results, including drilling risks,
uncertainties inherent in estimating reserves and future production
and the ability to execute on production and development plans. See
"Risk Factors" in the respective companies' recent filings with the
Securities and Exchange Commission, including Chesapeake's Prospectus
Supplement filed July 10, 2008 and BP's 2007 Annual Reports on Form
20-F filed March 4, 2008 for a more complete discussion of risk
factors that could cause actual results to differ from anticipated
results. The companies undertake no obligation to publicly update or
revise any forward-looking statements.
CONTACT: Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
Marc Rowland, 405-879-9232
marc.rowland@chk.com
or
BP American Production Company
Daren Beaudo, 281-366-8346
daren.beaudo@bp.com
or
Marti Powers, 281-236-2283
marti.powers@bp.com
SOURCE: Chesapeake Energy Corporation and BP America Inc.