Southwestern Energy Company acquire certain oil,gas assets covering 413,000 net acres

Southwestern Energy to acquire certain oil and gas assets of Chesapeake

11:07 AM, 20th October 2014
Southwestern Energy Company acquire certain oil,gas assets covering 413,000 net acres

HOUSTON, US: Southwestern Energy Company has signed a purchase and sale agreement with Chesapeake Energy Corporation to acquire certain oil and gas assets covering approximately 413,000 net acres in West Virginia and southwest Pennsylvania targeting natural gas, natural gas liquids and crude oil contained in the Upper Devonian, Marcellus and Utica shales for approximately $5.375 billion.

The acquired assets include 256 operated and producing Marcellus and Utica horizontal wells and an additional 179 non-operated or non-producing Marcellus and Utica horizontal wells, bringing the total horizontal well count to 435 wells with net production in September 2014 of approximately 336 million cubic feet of gas equivalent per day (55% gas, 36% NGL and 9% oil). The average working interest of the operated properties is 67.5%, and the transaction is subject to consent of the principal co-owner of this acreage, which also has a 30-day preferential right to purchase. The transaction is subject to other customary conditions and is currently expected to close by year-end.

“Southwestern already has leading positions in two world class projects in our Fayetteville shale and northeastern Pennsylvania Marcellus assets and both will continue delivering highly economic production and reserve growth for many years. With this acquisition, we will have secured a complementary third premier acreage position. The early drilling in both the liquids-rich Marcellus and emerging Utica plays has confirmed the resource potential and the economic strength of a long-term development programme. Furthermore, this transaction fits perfectly with Southwestern’s vertical integration strategy and, through our operational strengths and core competencies, we expect to drive exceptional future value from these assets,” said Steve Mueller, President and Chief Executive Officer, Southwestern Energy.

 

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