Permian Oil and Gas

Royal Dutch Shell - Permian Basin Acquisition Map

Royal Dutch Shell (RDS-A, RDS-B) is one of the companies buying Permian Basin assets from Chesapeake Energy (CHK) in the deal announced on September 12, 2012.

Royal Dutch Shell is paying $1.935 billion for 618,000 net acres or $3,172 per acre.  The properties has both developed and undeveloped acreage with current production of 26,000 barrels of oil equivalent per day. 

Royal Dutch Shell said that growth opportunities exist on the undeveloped acreage for the development of the Wolfcamp, Third Bone Spring and Avalon Shale as indicated in the map below.

Chesapeake Energy Sells Permian Basin Oil and Gas Properties

Chesapeake Energy (CHK) agreed to sell the company’s oil and gas properties in the Permian Basin to three separate buyers. The company expects to receive proceeds of $6.9 billion for these properties, its midstream assets and non-core leasehold in other areas. Chesapeake Energy will use part of the proceeds to pay down $4 billion in term loans in the fourth quarter of 2012. 

Chesapeake Energy will receive $3.3 billion for its Permian Basin properties which have current production of 21,000 barrels of crude oil and natural gas liquids per day, along with 90 million cubic feet of natural gas per day. The three buyers are Royal Dutch Shell (RDS.A, RDS.B), Chevron Corporation (NYSE:CVX) and EnerVest, Ltd. 

Royal Dutch Shell and Chevron Corporation are buying acreage in the Delaware Basin while EnerVest, Ltd. will get properties in the Midland Basin.  Chesapeake Energy will still have 470,000 net acres of undeveloped acreage in the Midland Basin after the sale is completed.