Chesapeake hits snags in selling shale positions

By Noah Brenner Houston

 08 November 2012 23:59 GMT

Chesapeake Energy of the US is finding it harder than expected to sell portions of its massive shale position to meet its debt obligations, forcing the company to rethink its divestment options and turn once again to debt markets.

The Oklahoma-based player told investors that a proposed joint venture in the Mississippi Lime tight oil play has once again been delayed, and it may seek an outright sale of the acreage.

The Mississippi Lime joint venture has been a pillar of Chesapeake’s plan to monetise assets and was seen as a prime candidate for investment from Asian national oil companies.

“With regard to the Mississippi Lime, it has been a long and frustrating process there, because we really started out in late spring targeting Asian companies exclusively for a joint venture,” Chesapeake…

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