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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