OREANDA-NEWS. March 04, 2013. A major new deal has underlined the potential of the Mississippi Lime shale play in Oklahoma.

Chinese oil giant Sinopec has reportedly struck a USD 1bn deal to buy stakes in Chesapeake Energy’s assets in the Mississippi Lime.

The deal, valued at an estimated USD 2,400 per acre, gives Sinopec a 50% stake in the American firm’s projects.

It latest deal is another sign of China’s significant interest in US shale assets following Sinochem’s USD 1.7bn investment in Texas’s Wolfcamp shale and after China National Offshore Oil Company (CNOOC) stumped up over USD 15bn to buy Nexen.

Many small cap investors in the UK will be familiar with the potential of the Mississippi Lime, with Magnolia Petroleum (LON:MAGP) and newly listed Northcote Energy (LON:NCT) both building their businesses with a focus on the emerging shale region.