CNOOC acquires a stake in Chesapeake's Niobrara acreage
CNOOC Ltd. has entered into an agreement with Chesapeake to acquire a 33.3% interest in the company's Niobrara Shale acreage. The transaction follows the Eagle Ford JV between the companies announced in October 2010. As in the earlier deal, CNOOC will pay Chesapeake an up front sum, in addition to a cost carry. The total consideration is US$1,267 million (nominal). We value the deal at an Implied Long-term oil Price of US$82/bbl (NPV10, in 2011 terms). Unit metrics equate to an ...