BP Sells North Sea Assets, Acquires Utica Shale Leases (BP, CHK, APC, CVX)

BP received $100 million in a first payment, with the remaining $300 million plus a potential $10 million due at the time the sale closes, now expected by the end of this year.

The company also announced today that it had negotiated leases on about 84,000 acres in the Utica shale play in Ohio. The deal was negotiated between BP and a group representing landowners in the Ohio Valley. Terms of the deal are confidential, but BP said that it needs to “execute” an agreement with each landowner.

BP is the latest major producer to enter the Utica play. Chesapeake Energy Corp. (NYSE: CHK), Anadarko Petroleum Corp. (NYSE: APC), and Chevron Corp. (NYSE: CVX) are among the other exploration and production companies active in the region.

BP’s shares are down about -2% today, at $45.30 in a 52-week range of $33.62-$48.34.

Paul Ausick