Norwegian oil giant Statoil has announced that it has sold its shale gas properties in West Virginia to U.S. independent producer EQT for $407mn.
The deal – some 62,500 acres in total – includes land in Wetzel, Tyler, and Harrison counties and 31 Marcellus wells, of which 24 are currently pumping out 50 million cubic feet of natural gas daily. The new acquisitions will allow EQT to increase productivity from its current wells by allowing the company to drill longer laterals under the newly-acquired land.
Statoil has been operating in the U.S. as Statoil USA Onshore Properties Inc. since in 2008 when it bought Marcellus acreage from Chesapeake Energy. However, the current slump in oil prices has caused the company to divest the assets.
The company said it will keep the Marcellus properties it operates in Ohio and all its Marcellus properties it does not operate.
EQT announced last month that it’s looking to buy more acreage in order to strengthen its core area in the south-eastern part of the Marcellus shale.
“For the most part, we happen to be focused on transactions that are relatively small in nature,” EQT’s CEO Dave Porges told analysts last week.
The transaction is expected to close in July.
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