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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (40685)	2/21/2011 7:01:05 PM
From: E_K_S	Respond to of 78476

Seems like Icahn knew something was brewing or just has a good eye for value . . . BHP to Buy Chesapeake Arkansas Shale Assets for $4.75 Billion noir.bloomberg.com From the article:"...BHP Billiton Ltd., the world’s biggest mining company, agreed to buy Chesapeake Energy Corp. assets in central Arkansas for $4.75 billion in cash, entering the U.S. shale gas business for the first time...." "...Chesapeake agreed to sell all of its interests in about 487,000 net acres of properties in central Arkansas, the company said. The transaction is expected to close in the first half of this year, Chesapeake said...." -------------------------------------------------------------------- I calculate that at $9,754 per acre. Williams paid about $7,000/acre for Marcellus shale acreage in 2010. This compares to PVA's purchase of some Eagle Ford shale acreage in August 2010 for $4,600/acre. CNOOC (China National Offshore Oil Corporation) is paying $2.16 billion -- half up front, and half in the form of future drilling costs -- to earn a one-third interest in Chesapeake's 600,000 net acres in the Eagle Ford. Ignoring the time value of money, that works out to $10,800 per acre. Of the recent buys, it seems like PVA got one of the best deals. EKS