Energy Business Review: Chevron Hits Gas PAY, Chaespeake DIVESTS In Texas
Here are Monday’s top stories:
Talisman Energy’s (NYSE:TLM) divests 49 percent of its British North Sea division to Sinopec (NYSE:SNP) for $1.5 billion, which pushes the proceeds from asset sales in 2012 to $2.5 billion, and will allow Talisman to finance growth areas in its portfolio, and also to reinforce its balance sheet despite low natural gas prices in North America. At the same time, the firm will also use $500 million to buy back stock.
Chevron Corporation (NYSE:CVX) reports its Pontus-1 exploration bore in the Greater Gorgon area offshore from western Australia, hit 97 feet of net gas pay: “The Pontus-1 discovery again highlights Chevron’s exploration success as we continue building a significant natural gas position in Western Australia to supply Australia and the Asia-Pacific region.”
Marathon Oil Corporation (NYSE:MRO) moves into Kenya via an arrangement with Africa Oil, to purchase an interest in two onshore exploration blocks which amount to more than 11 million gross acres. The company will pay $35 million to acquire a 50 percent working interest in Block 9 plus a 15 percent investment in Block 12A located in northwest Kenya. The firms also agree to go ahead with exploration activities in Ethiopia.
Chesapeake Energy Corporation (NYSE:CHK) is said to be divesting 3,300 acres in the Barnett Shale in north Texas, as part of its endeavors to close its funding deficit in 2012 and 2013, and to restrict its exposure to low natural gas prices. The company’s real estate division intends to raise nearly $100 million in proceeds.
Investing Insights: Gold and Silver Dip, U.S. Dollar Grinds Higher.
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