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A joint investment venture between U.S. natural gas producer Chesapeake Energy Corp. and Europe’s second largest natural gas supplier, StatoilHydro, is coming to fruition in Wayne County.
The companies announced last November that StatoilHydro would invest $3.375 billion into Chesapeake Energy’s Marcellus Shale operations, in exchange for a 32.5 percent ownership interest in some of the leases in that area.
A Wayne Independent review of natural gas leases - a legal document giving a company the right to explore and drill for natural gas on private property - found that the companies are fulfilling that plan here, according to county records.
More than 1,500 Chesapeake Appalachia, a subsidiary of Chesapeake Energy Corp., natural gas leases in Wayne County have been modified to include StatoilHydro’s 32.5 percent ownership interest, allowing the Norwegian company to recoup its investment when the natural gas wells begin producing a revenue stream that is expected to last at least 10 years.
Under the agreement, Chesapeake Appalachia will remain as the exploration, drill and production operator, said company representatives at the request of an inquiry by The Wayne Independent.
“StatoilHydro is not an operator in any of the leases, and consequently will not seek any (environmental) permits,” said Kjersti H. Torgersen, vice president of communications with StatoilHydro U.S.A.
“We have very good working relations with (Chesapeake Energy), and we are happy to see the operations moving forward in a timely manner,” she added.
Brian Grove, Chesapeake Appalachia’s local executive based in Bradford County, said: “As with all our joint ventures, Chesapeake is the operator.”
A Marcellus Shale natural gas well can produce the energy commodity for up to 65 years, according to StatoilHydro; however, the first 10 years are generally considered to reap the most volume, about 55 percent of the well’s natural gas content. If production ramps up as expected throughout Chesapeake Energy’s - and now StatoilHydro’s - leasehold, the Norwegian company anticipates a return on its investment as more produced natural gas is sold on the market, according to company documents.
With the $3.375 billion capital injection, Chesapeake Energy Corp. also regained its massive leasing investment in the Marcellus Shale, a vast geologic formation that resides beneath Wayne County and is packed with natural gas. The U.S. company holds approximately 1.8 million acres in an area spanning the Commonwealth and other states in the Appalachian-based shale. Its leasehold in Wayne County is by far the largest of any other natural gas companies here.
Chesapeake Appalachia will retain a 67.5 percent ownership interest in its Wayne County natural gas leases that now have StatoilHydro interest. The companies have been submitting revised leases at the county deeds office for most of the year, as late as this month, representing private properties scattered throughout the county. The agreement is effective as of March 24, 2009.
Under the joint venture, both companies publicly announced that they anticipate developing 13,500 to 17,000 natural gas wells in the next 20 years in an area encompassing four states.
The companies are also engaging in an international alliance to explore for unconventional natural gas.
A joint investment venture between U.S. natural gas producer Chesapeake Energy Corp. and Europe’s second largest natural gas supplier, StatoilHydro, is coming to fruition in Wayne County.
The companies announced last November that StatoilHydro would invest $3.375 billion into Chesapeake Energy’s Marcellus Shale operations, in exchange for a 32.5 percent ownership interest in some of the leases in that area.
A Wayne Independent review of natural gas leases - a legal document giving a company the right to explore and drill for natural gas on private property - found that the companies are fulfilling that plan here, according to county records.
More than 1,500 Chesapeake Appalachia, a subsidiary of Chesapeake Energy Corp., natural gas leases in Wayne County have been modified to include StatoilHydro’s 32.5 percent ownership interest, allowing the Norwegian company to recoup its investment when the natural gas wells begin producing a revenue stream that is expected to last at least 10 years.
Under the agreement, Chesapeake Appalachia will remain as the exploration, drill and production operator, said company representatives at the request of an inquiry by The Wayne Independent.
“StatoilHydro is not an operator in any of the leases, and consequently will not seek any (environmental) permits,” said Kjersti H. Torgersen, vice president of communications with StatoilHydro U.S.A.
“We have very good working relations with (Chesapeake Energy), and we are happy to see the operations moving forward in a timely manner,” she added.
Brian Grove, Chesapeake Appalachia’s local executive based in Bradford County, said: “As with all our joint ventures, Chesapeake is the operator.”
A Marcellus Shale natural gas well can produce the energy commodity for up to 65 years, according to StatoilHydro; however, the first 10 years are generally considered to reap the most volume, about 55 percent of the well’s natural gas content. If production ramps up as expected throughout Chesapeake Energy’s - and now StatoilHydro’s - leasehold, the Norwegian company anticipates a return on its investment as more produced natural gas is sold on the market, according to company documents.
With the $3.375 billion capital injection, Chesapeake Energy Corp. also regained its massive leasing investment in the Marcellus Shale, a vast geologic formation that resides beneath Wayne County and is packed with natural gas. The U.S. company holds approximately 1.8 million acres in an area spanning the Commonwealth and other states in the Appalachian-based shale. Its leasehold in Wayne County is by far the largest of any other natural gas companies here.
Chesapeake Appalachia will retain a 67.5 percent ownership interest in its Wayne County natural gas leases that now have StatoilHydro interest. The companies have been submitting revised leases at the county deeds office for most of the year, as late as this month, representing private properties scattered throughout the county. The agreement is effective as of March 24, 2009.
Under the joint venture, both companies publicly announced that they anticipate developing 13,500 to 17,000 natural gas wells in the next 20 years in an area encompassing four states.
The companies are also engaging in an international alliance to explore for unconventional natural gas.
