HAPPY NEW YEAR for DHF-total to buy into Chesapeake Gas & Oil. $$$$
DHF just happens to own close to $10 Million Dollars worth of Chesapeake Bonds, so looks like a great start for DHF for the New Year. IMO
Total to buy stake in Chesapeake gas assets Total commits $2.25 billion to help develop Chesapeake Energy's gas shale assets in Texas
Companies:Chesapeake Energy CorporationTotal SaPlains Exploration Production Company . On Monday January 4, 2010, 9:06 am NEW YORK (AP) -- The French oil company Total SA on Monday made a move into the U.S. natural gas market with a $2.25 billion deal with Oklahoma's Chesapeake Energy Corp.
Total's agreement with Chesapeake comes just a few weeks after Exxon Mobil Corp. said it would buy natural gas producer XTO Energy in a $31 billion all-stock deal.
Shares of Chesapeake rose 5.2 percent to $27.22 in premarket trading. Total's U.S. shares climbed 2.9 percent to $65.90.
Total said it will pay $800 million in cash for a 25 percent stake in Chesapeake's Barnett Shale assets, which hold vast quantities of natural gas in northern Texas.
The French company will pay an additional $1.45 billion to help fund 60 percent of Chesapeake's share of drilling and completion expenses.
The deal provides Total with additional production of about 175 million cubic feet per day of natural gas. Growth in future years should increase Total's share of production to over 250 million cubic feet per day, the company predicted. Total's share of proven reserves will be about 0.75 trillion cubic feet of gas, with additional unproved reserves of about 1.6 trillion cubic feet.
Total's CEO Christophe de Margerie said the deal is a "strategically important move" into the U.S. shale gas business.
Shale is a layered, sedimentary rock that exists in formations throughout the world. Natural gas is tightly locked in the rock formations and had been extraordinarily expensive to extract until the last few years.
The deal "will allow Total to develop its expertise in unconventional hydrocarbons in order to expand its unconventional business worldwide," Total's CEO said.
Chesapeake's CEO Aubrey McClendon said the transaction boosts the company's financial position.
The companies expect the deal will close at the end of January. Chesapeake, which is based in Oklahoma City, has struck similar partnership deals with Plains Exploration & Production Co., BP America and Statoil.
DHF-- Coupon Maturity Principal Bonds and Notes (continued) Rate (%) Date Amount ($) Value ($) Minerals—1.2% Teck Resources, Sr. Scd. Notes 10.25 5/15/16 290,000 a 329,150 Teck Resources, Sr. Scd. Notes 10.75 5/15/19 2,645,000 a 3,088,038 3,417,188
Oil & Gas—8.6% ANR Pipeline, Sr. Unscd. Notes 7.00 6/1/25 110,000 a 115,075 CHESAPEAKE Energy, Gtd. Notes 7.00 8/15/14 2,490,000 a 2,421,525 CHESAPEAKE Energy, Gtd. Notes 7.25 12/15/18 725,000 a 688,750 CHESAPEAKE Energy, Gtd. Notes 7.50 9/15/13 920,000 a 918,850 CHESAPEAKE Energy, Gtd. Notes 7.50 6/15/14 1,035,000 a 1,028,531 CHESAPEAKE Energy, Gtd. Notes 9.50 2/15/15 3,285,000 a 3,473,888
Cie Gen Geophysique, Sr. Notes 9.50 5/15/16 1,660,000 a,c 1,763,750 Cimarex Energy, Gtd. Notes 7.13 5/1/17 2,375,000 a 2,220,625 Forest Oil, Sr. Notes 8.50 2/15/14 1,550,000 a,c 1,569,375 North American Energy Alliance, Sr. Scd. Notes 10.88 6/1/16 1,025,000 a,c 1,060,875 PetroHawk Energy, Gtd. Notes 9.13 7/15/13 3,370,000 a 3,479,525 Petrohawk Energy, Sr. Notes 10.50 8/1/14 435,000 a,c 469,800 Petroleos De Venezuela, Gtd. Notes 5.25 4/12/17 3,240,000 1,992,600 Range Resources, Gtd. Notes 7.25 5/1/18 890,000 a 876,650 Range Resources, Gtd. Notes 7.50 10/1/17 800,000 a 800,000 PARIS—Total SA has become the latest oil major to enter the U.S. unconventional gas sector after announcing a joint-venture with natural-gas producer Chesapeake Energy Corp. on Monday.