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View Full Version : "China Continues to 'Eat Americas Lunch' At Americas Table !"



megimoo
02-01-2011, 01:15 PM
China Just Made A Huge Investment In The American Energy Source That Everyone Still Ignores.

"China Buying a Third of American Shale Oil Project !"

China National Offshore Oil Company just bought a huge stake in an American shale oil project, according to China Daily. The deal, valued at $570 million, will see China buy a third of Chesapeake Energy Corporation's Niobrara Shale project. The Niobrara Shale formation stretches over Colorado and Wyoming, as well as Kansas and Nebraska. Chesapeake Energy's position is in Wyoming and Colorado. If Chesapeake find any more oil in this region, CNOOC has the rights to 33.3% of what is found. The area in questions is listed under the "Powder river and DJ basin" section of Chesapeake Energy's most recent..

http://www.businessinsider.com/china-cnooc-investment-niobrara-shale-2011-2

Starbuck
02-01-2011, 09:55 PM
.......... If Chesapeake find any more oil in this region, CNOOC has the rights to 33.3% of what is found........

That leaves me with a bunch of questions.
1) 33% of what is found? Really? I kind of doubt it. At best, I would expect CNOOC to recieve 33% of the dividends paid out from what has been found. Same deal is open to me - well, assuming I had 570 Million that I was willing to invest in that particular manner. And I don't.

2) Did Chesapeake try to fund this operation some other way?

3) What possible expenses would CNOON incur? Are they all done putting money out? Well, doesn't look like it.

The Chinese explorer also agreed to pay 66.7 percent of Chesapeake’s costs up to $697 million to drill and complete wells in the area, the companies said in a statement yesterday.
http://fuelfix.com/blog/2011/01/31/cnooc-pays570-for-stake-in-niobrara-shale-project/
ALSO?! They're on call for 697M + 570B!
In any case the Chinese Gov't owns 950 Billion worth of gov't securities, which is about the same as Japan owns, so a Chinese company owning a Billionl isn't really all that big a deal.

CHK, the symbol for Chesapeake Energy, still owns 67%. What's the big deal? In a roundabout way, I own some CHK stock. Today it hit a new high for the year, so I made money. Maybe CNOOC will, too.

fettpett
02-01-2011, 10:01 PM
how easily this could have been prevented if there was more drilling in the US and more favorable environment for drilling