Chesapeake and KKR May Join Forces in Oil and Gas Venture

Chesapeake Energy Corp is likely to announce a $250 million partnership with private equity group KKR to invest in US oil and gas fields, the Wall Street Journal reported, writes Reuters. The firms would initially invest in mineral rights and royalty interests in US drilling fields, mainly those focusing on shale and other unconventional energy sources, writes Reuters.

Reuters – Chesapeake Energy Corp is likely to announce a $250 million partnership with private equity group KKR to invest in U.S. oil and gas fields, the Wall Street Journal reported, citing people familiar with the matter.

The companies would initialy invest in mineral rights and royalty interests in the U.S. drilling fields, mainly those focusing on shale and other unconventional energy sources, the paper said, adding the amount could grow over time.

Of the initial investment, Chesapeake would contribute $25 million and focus on finding, acquiring and managing royalty interests, the people told the paper. KKR would control three of five seats on the new entity’s board.

Chesapeake and KKR were not available for comment.