Sinopec deal boosts Mississippi Lime shale play

The Chinese state-run company makes a $1.02 billion deal with Chesapeake Energy in the southern US

Sinopec's $1.02 billion deal with Chesapeake Energy to enter the Mississippian Lime tight oil play in the southern US has energised interest in a region that some say will prove more prolific than the Bakken shale in North Dakota. Chinese state-run Sinopec has agreed to buy a 50% interest in 850,000 acres of Chesapeake’s existing oil and gas leases in Oklahoma. The acreage is producing around 34,000 barrels of oil equivalent per day and held 140 million barrels of oil equivalent of net proved reserves as of 31 December 2012. Sinopec will fund the purchase with cash, 93% of which is due upon closing in the second quarter of this year. It is the second major deal by a Chinese state oil company