Summary
EXPAND ENERGY Corp (EXE) has filed an 8-K report detailing two significant transactions, providing investors with updates on strategic partnerships and asset divestitures. On February 16, 2011, the company announced the closing of a joint venture with CNOOC Limited concerning Niobrara-focused acreage in the Denver-Julesburg (DJ) and Powder River Basins. This collaboration involves CNOOC acquiring a 33.3% interest in approximately 800,000 net acres for $570 million in cash and an agreement to fund a significant portion of future drilling and completion costs.
Key Highlights
- 1CNOOC Limited has acquired a 33.3% stake in EXPAND ENERGY's Niobrara-focused acreage in the DJ and Powder River Basins.
- 2The Niobrara joint venture with CNOOC includes approximately 800,000 net leasehold acres.
- 3EXPAND ENERGY received $570 million in cash at closing from the CNOOC transaction.
- 4CNOOC will fund 66.7% of EXPAND ENERGY's share of drilling and completion costs up to $697 million through year-end 2014.
- 5EXPAND ENERGY is selling its interest in approximately 487,000 net acres in the Fayetteville Shale play.
- 6BHP Billiton Petroleum is the buyer of EXPAND ENERGY's Fayetteville Shale assets.
- 7These transactions represent a significant shift in EXPAND ENERGY's asset portfolio and strategic focus.