Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) plans to acquire a 50% interest in joint-venture agreement with Ontario-based Epsilon Energy Ltd. (Toronto: EPS) to develop its Marcellus shale holdings for a total deal value of $100 million.

Chesapeake will pay $5 million in cash up front and carry the first $95 million of Epsilon's 50% share of leasehold, drilling, completing, equipping and gathering costs.

The joint venture involves 11,500 net acres (5,250 net to Chesapeake) in Epsilon’s Highway 706 prospect in Susquehanna County, Pennsylvania. Current total production is approximately 10 ...