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.


© Worldofchemicals News 



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Tikkurila to acquire ISO Paint Nordic

VANTAA, FINLAND: Tikkurila has agreed on the acquisition of the business of ISO Paint Nordic A/S, which focuses on developing, manufacturing and selli ...

Read more
DNA crystals designed, could create revolutionary nanodevices

BOSTON, US: Scientists have designed the first large DNA crystals with precisely prescribed depths and complex 3D features, which could create revolut ...

Read more
New research helps prevent over charging of batteries, improves safety of electronics

LEXINGTON, US: Research from the University of Kentucky Department of Chemistry will help batteries resist overcharging, improving the safety of elect ...

Read more
Kuraray to sell European polyvinyl butyral film business

TOKYO, JAPAN: Kuraray Co Ltd has reached an agreement to sell the European polyvinyl butyral (PVB) film business formerly owned by European subsidiari ...

Read more
Yara, CF Industries end fertilizer merger talks

DEERFIELD, US/OSLO, NORWAY: CF Industries Holdings Inc ended merger talks with Norway’s Yara International ASA after the companies failed to agr ...

Read more
Sugar mill fined approximately $1 million for polluting river Ganga in India

NEW DELHI, INDIA: The National Green Tribunal (NGT) has cracked the whip on industries that have been polluting river Ganga. It has imposed a Rs 5 cro ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X