Chesapeake, Statoil Form Gas Venture

OKLAHOMA CITY (AP) -- Chesapeake Energy (CHK Quote) and Norwegian energy company StatoilHydro (STO Quote) announced Tuesday the formation of a strategic alliance to explore for unconventional natural gas opportunities worldwide and an agreement for a joint venture in large gas field in the eastern U.S.

StatoilHydro will pay $3.375 billion for a 32.5% interest in Chesapeake's assets in the so-called Marcellus Shale geologic formation -- about 1.8 million net acres -- in the Appalachian region. Oklahoma City-based Chesapeake would retain the remaining 67.5% interest in the assets.

StatoilHydro will pay $1.25 billion of the amount in cash at closing and $2.125 billion from 2009 to 2012 by funding 75% of Chesapeake's share of drilling and completion expenditures. ...