Is it true that Chesapeake and BP have partnered in some areas? Also, is CKP having cash flow problems?

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Yes, it is true. BP bought a 25% interest in CHK's Fayetteville Shale holdings in Arkansas for $1.9 billion. They will have a joint venture from here on out on all existing wells plus all new wells drilled and acreage leased. BP earlier bought 100% of CHK's Woodford Shale assets in OK.

CHK is in deed having cashflow issues, but they are the good kind to have. They have been able to lease up over a million acres in some of the hottest plays in North America. to drill up all this acreage will take a huge amount of cash. So, they've been selling off portions of their holdings to raise cash, and at the same time getting huge amounts of leverage. They did a similar type deal in the Haynesville with Plains Exploration and are trying to do another 25% deal in the Appalachian region. This is a really good thing for CHK and the partners,, although I think their partners way overpaid.

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GoHaynesvilleShale.com (GHS) was launched in 2008 during a pivotal moment in the energy industry, when the Haynesville Shale formation—a massive natural gas reserve lying beneath parts of northwest Louisiana, east Texas, and southwest Arkansas—was beginning to attract national attention. The website was the brainchild of Keith Mauck, a landowner and entrepreneur who recognized a pressing need: landowners in the region had little access to…

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Posted by Keith Mauck (Site Publisher) on May 21, 2025 at 6:00

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