Chesapeake Energy Corp. has completed a joint venture (JV) transaction with Total E&P USA Inc., a wholly owned subsidiary of Total SA, whereby Total has acquired a 25% interest in approximately 619,000 acres in the liquids-rich area of the Utica Shale.
Of the JV acreage, approximately 542,000 acres were contributed to the JV by Chesapeake and 77,000 acres by Houston-based EnerVest Ltd. and its affiliates. The JV area covers all or a portion of 10 counties in eastern Ohio.
The combined value of the transaction is approximately $2.32 billion, the companies say. Chesapeake will serve as the operator of the JV and will conduct all leasing, drilling, operating and marketing activities for the project.