On April 9th, Trans Energy, a Marcellus Shale oil and gas exploration and development company, agreed to sell its Marcellus assets in Wetzel County, West Virginia, for approximately $71.3 million in net proceeds, to an unnamed buyer.
The deal involves 5,159 net acres and twelve producing Marcellus wells, representing approximately one-third of Trans Energy’s total acreage in the Marcellus Shale.
John Corp, President of Trans Energy, said, “Today’s announcement supports the belief that our team’s hard work and well defined strategy has built a position in Northern West Virginia that is highly valuable.”
Corp continued, “We have been successful in our efforts to expand the overall acreage position of our joint development arrangement with Republic Energy over the past year, particularly in Marion and Marshall Counties. We believe that this will continue to be the case over the near term, and that allocating a significant portion of the proceeds from the sale toward debt repayment will better position us to then focus on the development of our core acreage positions in Marshall and Marion Counties. Those areas represent attractive opportunities for us to increase shareholder value.”
After the sale, Trans Energy will continue to own approximately 10,400 net acres in Marshall and Marion Counties. The joint venture of Trans Energy and Republic Energy will continue to own a combined 27,800 net acres in those counties, where they expect to drill approximately 150 horizontal Marcellus wellbores with lateral lengths of at least 4,500 feet, pending the application for and the receipt of permits, on this acreage.
Management further believes it can ultimately drill over 350 such horizontal Marcellus wells on this acreage position, pending additional title work and potential leasehold acquisitions that have already been planned.
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