Southwestern Energy Company and Chesapeake Energy Corporation have signed a purchase agreement that transfers natural gas properties located in Pennsylvania prospective for the Marcellus Shale.
The 162,000-net acre resource is located in Susquehanna, Wyoming, Tioga and Sullivan counties with current net production nearly 2 million cubic feet per day from 17 gross wells, stated Southwestern Energy in a released statement.
The deal was for $93 million, subject to closing conditions, and the closing date is slated for on or around May 15.
"This year, 2013, is already proving to be an exciting year for Southwestern Energy," stated Steve Mueller, president and chief executive officer of Southwestern Energy. "This acquisition of approximately 162,000 net acres is near our existing position and provides Southwestern with even greater exposure to a world-class resource where we can further showcase our operational strengths."
Upon closing of the deal, Southwestern will own roughly 337,000 net acres in the Marcellus area.
"The acquisition adds more running room in the Marcellus, acreage expirations are most likely factored in the acquisition price and acreage renewals at current market prices would still suggest an attractive acquisition price," noted analysts at Stifel in an April 29 analysis brief. "We view the acquisition as a positive."
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