U.S., Chinese firms enter shale deal

[phantom power]

The China National Offshore Oil Corp. will pay Chesapeake Energy $2.2 billion for a one-third interest in a South Texas oil and natural gas shale project and will pay billions of dollars more for its share of development costs over the next several years.

Chesapeake Energy, an Oklahoma City-based domestic exploration company, announced the deal Sunday night, saying it will help speed development of resources on 600,000 acres in the Eagle Ford shale play that could help keep natural gas prices low and boost production of unconventional U.S. oil resources.

"They're providing the capital and we're providing the expertise and assets, and the output will be the development of American assets, less U.S. dependence on foreign oil and the creation of 20,000 jobs and tax revenues for all levels of government," Aubrey K. McClendon, Chesapeake's chief executive, said in an interview.

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/10/AR2010101004496.html

[pscot]

1. Chesapeake is the biggest gas driller

and producer in the country; maybe in the world. They control leases on millions of acres stretching from Texas to New York. Aubrey MacLendon is a hard case SOB.