Cimarex Energy to pay $180 million to Chesapeake for expanded acreage in Oklahoma field\

NEW YORK (Associated Press) - Cimarex Energy Co. said late Monday it will pay $180 million to buy acreage in a shale oil and gas formation in Oklahoma’s Anadarko Basin.

The independent oil and gas exploration and production company said it will acquire 38,000 acres from Chesapeake Energy Corp. in the Woodford Shale formation.

After completing the deal, Cimarex will have 88,000 net acres in the Anadarko-Woodford area. Cimarex has drilled or participated in 18 wells there, and eight others are drilling, including five operated by Cimarex.

Cimarex said it would fund the transaction with cash.

As of Sept. 30, the company said it had more than $200 million in cash and $500 million available under an undrawn bank facility.

In Tuesday morning trading, Cimarex shares fell 15 cents to $41.13; and Chesapeake shares added 11 cents to $23.42. Top of page

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Posted on Tuesday, October 21st, 2008 at 3:30 pm and is filed under Energy Prices.
Tags: Acquisition, cents, Chesapeake Energy Corp., Cimarex Energy Co., New York, oil and gas exploration, oil and gas formation, Oklahoma, undrawn bank facility, USD.