The French oil company Total reached a $2.25 bil. deal with Oklahoma”s Chesapeake Energy to enter the U.S. natural gas market, according to a report by USA Today.
USA Today reports that Total will pay $800 million in cash for a 25 percent stake in Chesapeake”s Barnett Shale assets, based in northern Texas. The French company will pay an additional $1.45 billion to fund 60 percent of Chesapeake”s share of drilling and completion expenses.
The deal provides Total with additional production of about 175 million cubic feet per day of natural gas, according to USA Today. Growth in future years should increase Total”s share of production to more than 250 million cubic feet per day, the company predicted. Total”s share of proven reserves will be about 0.75 trillion cubic feet of gas, with additional unproved reserves of about 1.6 trillion cubic feet.
For USA Today”s full report on this story, click here.
