Total raises Barnett Shale stake

HOUSTON, September 9, 2016 – Total acquired Chesapeake Energy’s 75% share in the Barnett Shale acreage in north Texas, the French major announced on Friday. The company’s stake will consequently increase from 25% to 100%.

Assets included in the transaction comprise 215,000 developed and undeveloped acres as well as a well producing 65,000 boepd and related infrastructure. Total believes they can significantly increase production on the block by taking over as operator.

As part of the deal, Chesapeake will have to pay USD 334 million to terminate gas processing company William’s gathering agreement. Total will have to make an additional payment of USD 420 million to Williams to restructure its gas gathering pact, as well as USD 138 million to terminate three of the company’s midstream capacity reservation contracts.

The acquisition is due to be completed in Q4 2016 for an undisclosed value. Total originally acquired 25% of the block in 2009.

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