Chevron (CVX) Unit to Acquire Delaware Basin Acreage from Chesapeake (CHK)
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Chevron Corporation (NYSE: CVX) announced that its subsidiary, Chevron U.S.A. Inc., has agreed to acquire 246,000 net leasehold acres in the Delaware Basin in New Mexico, a part of the Permian Basin, from Chesapeake Energy Corporation (NYSE: CHK).
Terms of the agreement were not disclosed.
Chevron already holds approximately 700,000 net acres in the Delaware Basin, which contains several oil and wet gas plays stacked together within several thousand feet of hydrocarbon-bearing rock. The plays include the Avalon Shale and the Bone Spring Sands.
The acreage included in the agreement has current net production of 7,000 barrels of oil equivalent per day, with the potential to increase substantially over the next few years. The acquired acreage will become part of Chevron’s operated and non-operated existing Delaware Basin activities.
The transaction is subject to some third-party preferential rights and is expected to close within the next 30 days, pending customary regulatory approvals.
Terms of the agreement were not disclosed.
Chevron already holds approximately 700,000 net acres in the Delaware Basin, which contains several oil and wet gas plays stacked together within several thousand feet of hydrocarbon-bearing rock. The plays include the Avalon Shale and the Bone Spring Sands.
The acreage included in the agreement has current net production of 7,000 barrels of oil equivalent per day, with the potential to increase substantially over the next few years. The acquired acreage will become part of Chevron’s operated and non-operated existing Delaware Basin activities.
The transaction is subject to some third-party preferential rights and is expected to close within the next 30 days, pending customary regulatory approvals.
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