StatoilHydro buys shale gas acreage from Chesapeake

By Aasa Christine Stoltz

OSLO (Reuters) - Norway's StatoilHydro (STL.OL) is to pay $3.375 billion for a stake in Chesapeake Energy's (CHK.N) shale gas assets, in a sign that cash-rich oil majors are gunning for the assets of companies hit by the credit crunch.

StatoilHydro, the second-largest supplier of natural gas to Europe, said it would pay Chesapeake $1.25 billion in cash and pay $2.125 billion in drilling costs for a 32.5 percent stake in the Marcellus prospects in the Appalachia region in the northeastern United States.

"We are establishing a strong platform for further developing our gas value chain business and growing our position in unconventional gas worldwide," StatoilHydro Chief Executive Helge Lund said in a statement.

Gas extracted from shale rock is considered unconventional as the process is more complicated and expensive than extraction from traditional gas reservoirs.

High gas prices and difficulties in securing access to reserves has prompted international oil groups like Statoil, Royal Dutch Shell (RDSa.L) and BP Plc (BP.L) to push into such areas.

StatoilHydro said the deal could add 2.5-3 billion barrels of oil equivalent of reserves to its balance sheet in time.

"StatoilHydro's equity production from the Marcellus shale gas play is expected to increase to at least 50,000 boepd in 2012 and at least 200,000 boepd after 2020," it said.

The deal, which covers 1.8 million acres of land, will ease tight funding at Chesapeake, which labours under a heavy debt burden.

Analysts have predicted other companies including BP and Shell could try and take advantage of funding challenges at many companies active in shale gas and related areas such as tight gas and coal bed methane, to expand their asset bases.

The transaction is expected to close by year end.

Arctic Securities analyst Trond Omdal said the deal appeared reasonable but that it would "reduce the free cash flow in the short term."

Shares in StatoilHydro were down 0.9 percent at 132.30 crowns at 0919 GMT, outperforming a 2.7 percent slide on the DJ Stoxx Oil and Gas Index .SXEP.

StatoilHydro's growth strategy has focused on North America in past years, with the Norwegian group strengthening its position in deepwater Gulf of Mexico and offshore Alaska.

It has also bought a Canadian oil sands venture but recently postponed a final investment decision until it gains more clarity on tax rules.

StatoilHydro also exports liquefied natural gas to the U.S. from its Barents Sea field.