Westmont Resources has completed an agreement that will extend Westmont's reach and resources with the acquisition of 92 wells in the Chattanooga Shale region in the northern tier of Tennessee from Domestic Energy Corporation.
Preliminary estimates indicate that the value of the reserves for these latest 92 wells could amount to nearly $200 million. This is based on the company's review of other assessments and production in the immediate area. The company is currently soliciting bids from independent oil industry geologists to provide a true bankable reserve assessment and verify Westmont's estimate.
Westmont's portfolio, in addition to this most recent acquisition in the Tennessee Chattanooga Shale region, includes joint ventures developing two significant blocks in the Marcellus Shale region, including 1,800 lease acres in Western Pennsylvania and 1,650 lease acres in West Virginia. "These new Tennessee assets are an excellent fits with our existing core areas and will expand our portfolio, which is balanced in terms of geography and geology," said Glenn McQuiston, Westmont's President. "This transaction is similar to our earlier strategic steps, bringing near-term production and cash flow as well as long-term upside potential with identified exploration opportunities."
"This is a strategic step and a natural extension into the Chattanooga," said Glenn McQuiston, Westmont's President. "We have considered extending our Marcellus natural resources operations into the Chattanooga region for some time and this acquisition provides a significant beachhead for growth in the region and complements our existing strengths in both West Virginia and Pennsylvania. It's the right time because recent advances in seismic technology and continued enhancements in facilities design have reduced the risks in one of the world's oldest basins which is now showing significant renewed potential."
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