Noble Energy has closed the previously announced agreements which create a joint venture partnership with CONSOL for the development of Marcellus Shale properties in southwest Pennsylvania and northwest West Virginia.
Under the agreements, Noble Energy acquired a 50 percent interest in 628,000 net undeveloped acres for approximately $1 billion, payable in three installments of which the first is $327 million. The Company also purchased a 50 percent interest in existing Marcellus production and infrastructure for approximately $232 million. In addition, Noble Energy agreed to fund approximately $2.1 billion of CONSOL's future drilling and completions costs, which are expected to extend over an eight-year period.
The total amount Noble Energy paid at closing was $593 million, which included the first installment payment, the full amount for production and infrastructure, and customary adjustments for net cash between the effective date and closing. The second and final installments will be paid on the first and second anniversaries of the closing, respectively.
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