Energy Business Review: Iraq Slaps Exxon, Chesapeake’s Strategy Shared

Exxon Mobil (NYSE:XOM) is punished by Iraq for its dalliances with Kurdistan. Iraq is barring the company from taking part in Iraq’s fourth oil and gas licensing auction, which is scheduled for May. Exxon’s deal with Kurdistan has jeopardized its contract to help develop production at southern West Qurna-1, Iraq’s second-biggest field.

Don’t Miss: Chesapeake Cash Flow Initiatives Revealed.

Chesapeake Energy (NYSE:CHK) is up after announcing plans to make $10 billion-$12 billion of transactions to fund its 2012 capital expenditures. Plans include seeking joint venture transactions in its Mississippi Lime field, considering a 100% sale of its Permian Basin assets, selling around $2 billion in pipeline and infrastructure assets, and issuing debt.

Royale Energy (NASDAQ:ROYL), Mexco Energy (AMEX:MXC) and Pyramid Oil (AMEX:PDO) posted big gains today. Blue Dolphin Energy (NASDAQ:BDCO) had a remarkable 66.2% run-up as well. Pricing in risk on Big Oil, the micro caps took the spotlight today, as more hostilities with Iran keep traders betting on the best energy plays.

Shell (RDS.A), Statoil (NYSE:STO), and Vermilion will invest another 800 million euros into a gas field offshore of Ireland. Hopes are to get production going by 2014. The project has been hurt by delays and local protests, decimating Ireland’s reputation as a place to explore for fuel. A recent licensing round conducted by the government drew zero bids from the oil majors.

Investing Insights: Gold and Silver Flat After Austerity Deal.

To contact the reporter on this story: Tanya Harding at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com