Half of Chesapeake Energy Corp's assets has just been purchased by China Petroleum and Chemical Corp or Sinopec. The main asset included in the sale is the Mississippi Lime Oil and Gas properties located in Oklahoma.
The sale increases Sinopec's presence in the North American shale gas industry as well as gain technological know-how on drilling techniques in these unique areas. The knowledge obtained would then be used in its very own shale reserves that are located overseas, primarily China.
Sinopec is currently Asia's biggest oil refiner and would purchase the Chesapeake asset and its net oil and gas leasehold totaling 850,000 acres. Overall Chesapeake has 2.1 million net acres of leasehold covering northern Oklahoma and southern Kansas. The production is averaging at 32,500 barrels of oil per day in the fourth quarter of 2012.
The total output is broken into 45% oil, 46% natural gas and the remainder was natural gas liquids.
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