Westmont Completes Marcellus Acquisition
Westmont announced the completion of a previously announced Marcellus shale play acquisition located in the southwest tier of Pennsylvania. The acquisition consists of approximately 233 net acres of leasehold in Westmoreland County and includes 8 producing wells of approximately 280 Mcf per day (gross) of natural gas, 145 net acres held by production, a six-inch steel pipe gathering system, and a saltwater disposal well.
Glenn McQuiston, Westmont's President, stated, "With the completion of this acquisition, Westmont has taken the first step in its plans to acquire approximately 3,650 net acres of Marcellus leaseholds. Along with today's acquisition we are currently under contract for two additional properties representing another 3,400 net acres of leasehold in the Marcellus. This acquisition is a very positive step toward realizing our strategy of positioning the company for long-term reserve and production growth. At the same time the current production of this first acreage both substantially reduces the risks and provides a strong foundation for expansion into the remainder of our target properties. On the newly acquired acreage we plan to increase the depth of the existing wells, demonstrate the long-term potential of this acreage and follow on with additional wells."
Westmont's portfolio, in addition to this most recent acquisition in the Pennsylvania Marcellus Shale region, includes the pending development in the Chattanooga Shale region in northern Tennessee with 92 existing wells, 1,800 lease acres with 60 existing wells in Pennsylvania, and an additional 1,650 lease acres with 60 existing wells in West Virginia.
"Our specialty is applying cutting-edge technology in order to 'wring additional value from' long-lived, low risk natural gas and oil properties -- to squeeze more oil out of mature basins. These new Pennsylvania assets are excellent fits with our existing core areas and will further expand our portfolio," added McQuiston.