Undivided

A unit of Tokyo Gas Co. Ltd. is buying an undivided 25% interest in the Barnett Shale assets of Quicksilver Resources Inc. for $485 million, marking a milestone for the debt-laden Fort Worth, TX-based producer, which has long sought a Barnett partner.

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).

Pogo Producing Co. said it is selling an undivided 50% of each and all of its Gulf of Mexico leasehold interests to Mitsui & Co. Ltd. and Mitsui & Co. (USA) Inc. for $500 million. Proceeds will fund the previously announced acquisition of Latigo Petroleum Inc. (see Daily GPI, April 18).

Koch Gateway Pipeline has asked FERC to approve the sale of anundivided interest in its Mobile Bay Lateral assets to Florida GasTransmission (FGT) as part of the pipe’s Phase V expansion, givingFGT the right to half of the lateral’s capacity of 600 MMcf/d.

Koch Gateway Pipeline Co. has asked FERC to approve the sale ofan undivided interest in its Mobile Bay Lateral assets to FloridaGas Transmission (FGT) as part of the pipe’s Phase V expansion,giving FGT the right to half of the lateral’s capacity of 600MMcf/d.