Leasehold

Chesapeake Energy Corp. and China’s CNOOC Ltd. have closed their deal for CNOOC International Ltd. to buy a one-third undivided interest in Chesapeake’s 600,000 net oil and natural gas leasehold acres in the Eagle Ford Shale in South Texas, the parties said Tuesday. The price was $1.08 billion in cash plus a $40 million adjustment at closing. CNOOC Ltd. has agreed to fund 75% of Chesapeake’s share of drilling and completion costs up to $1.08 billion, which Chesapeake expects to occur by year-end 2012. The transaction represents Chesapeake’s fifth such deal in the shale patch. It was announced last month (see Shale Daily, Oct. 12).

Penn Virginia Corp. (PVA) on Friday agreed to pay an estimated $19.5 million in cash to add nearly 10,000 net acres to its Marcellus Shale leasehold. The producer also will gain an overriding royalty stake on a portion of the new acreage.

On the back of its Marcellus Shale leasehold, Range Resources Corp. said natural gas-weighted proved reserves in 2009 grew 18% to 3.1 Tcfe from 2.7 Tcfe at year-end 2008. Production averaged 457 MMcfe in 4Q2009, which was 13% higher than in 4Q2008, setting a new record for the independent.

Considering a decline in service costs, acreage leasehold expirations, an increase in oil drilling and the anticipation of higher natural gas prices, U.S. rig count assumptions for 2010 weren’t optimistic enough, energy analysts said last week.

Considering a decline in service costs, acreage leasehold expirations, an increase in oil drilling and the anticipation of higher natural gas prices, U.S. rig count assumptions for 2010 weren’t optimistic enough, energy analysts said Tuesday.

Newfield Exploration Co. stands to gain a big leasehold in the Maverick Basin of South Texas under an agreement with TXCO Resources Inc., which filed for bankruptcy earlier this year.

EnCana Corp. is actively looking for a partner to help develop some of its leasehold in the promising Haynesville Shale, company officials said last week.

EnCana Corp. is actively looking for a partner to help develop some of its leasehold in the promising Haynesville Shale, company officials said Wednesday.

Range Resources Corp. spent most of 2008 picking up prospective acreage in the Marcellus Shale, and by year’s end it had doubled its leasehold to 900,000 net acres. Now the production phase is kicking in, and Range plans to build its natural gas output from a current net rate of 30 MMcf/d to up to 100 MMcf/d by the end of 2009, the CEO said Wednesday.