Chesapeake Energy (CHK) and EnerVest, Ltd. entered into an agreement with Total (TOT) to jointly develop acreage in Ohio that is prospective for the Utica Shale.
The joint venture agreement covers 619,000 acres in ten counties in Eastern Ohio, with 542,000 net acres contributed by Chesapeake Energy and 77,000 net acres from EnerVest, Ltd.
Total is paying $2.32 billion for a 25% share of this position, with Chesapeake Energy receiving $2.03 billion and EnerVest, Ltd. getting $290 million. Total is paying approximately $700 million up front in cash to the two companies and the balance of $1.62 billion in the form of a drilling carry.
Chesapeake Energy will be the operator of the joint venture acreage and conduct all drilling and completion activities.
