Statoil Sells Marcellus Assets to EQT for $407 Million
May 02 2016 - 6:40PM
Dow Jones News
Statoil ASA said it has agreed to sell some of its assets in the
Marcellus Shale formation in West Virginia to EQT Corp. for $407
million in cash.
The Norwegian oil and gas producer said Monday the divestment
includes 62,500 acres of operated properties in West Virginia with
a production of about 9,300 barrels of oil equivalent a day in the
first quarter.
Statoil said it would retain its operated properties in the
state of Ohio and its non-operated Marcellus positions.
The company entered Marcellus and the U.S. shale industry
through a 2008 joint venture with Chesapeake Energy Corp. and in
2012 became an operator in the area through the acquisition of
additional acreage in a liquids-rich part of the formation.
EQT said the acquired assets, primarily located in West
Virginia's Wetzel, Tyler and Harrison counties, would add a sizable
amount of acreage within the company's core development area and
complement its adjacent operations in Wetzel County.
The acquisition would boost EQT's core undeveloped Marcellus
acreage by 29%, it said.
The current natural gas production in the acquired area was
about 50 million cubic feet a day, and its resource potential was
estimated at 9.2 trillion cubic feet, EQT said.
Statoil said it expected the transaction to close in July,
subject to certain conditions being met. It didn't specify which
conditions.
Statoil in 2014 divested parts of its non-operated assets in the
southern Marcellus to Southwestern Energy for $394 million.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
(END) Dow Jones Newswires
May 02, 2016 18:25 ET (22:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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