When my Foolish colleague David Lee Smith characterized one of BP's
Just weeks later, the two firms have inked yet another major agreement. This time, the international oil and gas major is picking up 25% of Chesapeake's Fayetteville Shale assets for $1.9 billion.
BP isn't the only company to jump on board this Arkansas shale sizzler in the past year. XTO Energy
Before all the Haynesville hoopla, the Fayetteville was looking like the jewel in Chesapeake's crown. Despite its recent overshadowing, this is still a terrific asset. Chesapeake notes that initial production rates are on the rise, while drilling costs are declining. So why is Chesapeake selling?
This deal is part of the same asset monetization program that spurred the company to sell off the Woodford to BP, and to divest a 20% stake in the Haynesville to Plains Exploration & Production
Chesapeake is also actively negotiating a similar venture up in the Marcellus Shale. Any progress on that front with a company like ConocoPhillips