PARIS, Sept 9 French oil and gas company Total
said on Friday it will exercise its preemption right
to buy the remaining 75 percent stake in Barnett shale assets it
did not already own from Chesapeake.
The assets located in north Texas, with a net production of
approximately 65,000 barrels of oil equivalent per day, include
215,000 developed and undeveloped acres of land, wells, leases,
minerals, buildings and other properties.
"With the new conditions created by the exit of Chesapeake
and the associated restructuring of the midstream contracts, we
believe that we can extract significant value from the
substantial, well-located resource base," Jose Ignacio Sanz,
head of Total E&P in United States, said in the statement.
Under the terms of the deal, Chesapeake will pay $334
million to Williams, a company that gathers and processes 80
percent of the gas from the Barnett assets, to terminate its
gathering agreement, it said.
"Total E&P USA will supplement Chesapeake's payment with
$420 million to Williams for a fully restructured, competitive
gas gathering agreement," the statement said, adding that Total
will also pay $138 million to be released from three other
midstream capacity reservation contracts.
(Reporting by Bate Felix; Editing by Geert De Clercq)